France cuts budget by €10.6 bn to tackle deficit

27 Feb '24

1 min read

Pic: Adobe Stock

Insights

The French budget's financing requirement this year stands at €299.7 billion, down by €10.6 billion from last year's updated requirement.
State debt service for this year is expected to stand at €52.2 billion.
The net year-on-year increase in the nominal value of negotiable state debt with maturities of one year or more will be capped at €129.5 billion.

The total financing requirement of the French budget for this year stands at €299.7 billion, down by €10.6 billion from last year’s updated requirement.

The Budget Bill for 2024 was presented recently to the council of ministers, the Agence France Tresor (AFT), which handles public debt and treasury management, said in a release.

The financing requirement this year will be met by the medium- and long-term government debt issuance programme, net of buybacks, worth €285 billion; an increase in outstanding short-term government securities for €7.7 billion; €6.5 billion worth COVID debt redemption from the Caisse de la Dette Publique (Government Debt Fund); and other cash resources worth €0.5 billion.

State debt service for this year is expected to stand at €52.2 billion.

The net year-on-year increase in the nominal value of negotiable state debt with maturities of one year or more will be capped at €129.5 billion.

The deficit to be financed last year has been revised upwards to €172.1 billion compared to €164.9 billion provided for in the 2023 initial Budget Act promulgated in December 2022.

Fibre2Fashion News Desk (DS)

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