French budget deficit widens at end-July
France's budget deficit widens to 47.44 billion euros at the end of July, from 38.17 billion a year earlier, when state funds were bolstered by privatisation receipts.
By Agencies |
PARIS: France's budget deficit widened to 47.44 billion euros ($64.82 billion) at the end of July, from 38.17 billion a year earlier, when state coffers were bolstered by privatisation receipts, the finance ministry said on Friday.
The ministry said, adjusted for the extraordinary income a year earlier, the budget deficit at the end of July would have widened by only 3.18 billion from a year ago.
Spending rose to 164.60 billion euros from 160.55 billion a year earlier, but the ministry said the rise was explained by shifts in the timing of spending and did not endanger the government's objective of limiting a rise in public spending to 0.8 percent by the end of the year.
Revenues rose by some 2.0 billion euros from last year to 134.94 billion, boosted mainly by stronger company tax receipts.
Sluggish economic growth of 0.3 percent in the second quarter of the year has raised fears over whether France can meet its EU deficit commitments although the government has stuck to its 2007 growth forecast of 2.0-2.5 percent.
France is forecasting a budget deficit of 2.4 percent of gross domestic product in 2007, down from 2.5 percent in 2006.
The ministry said, adjusted for the extraordinary income a year earlier, the budget deficit at the end of July would have widened by only 3.18 billion from a year ago.
Spending rose to 164.60 billion euros from 160.55 billion a year earlier, but the ministry said the rise was explained by shifts in the timing of spending and did not endanger the government's objective of limiting a rise in public spending to 0.8 percent by the end of the year.
Revenues rose by some 2.0 billion euros from last year to 134.94 billion, boosted mainly by stronger company tax receipts.
Sluggish economic growth of 0.3 percent in the second quarter of the year has raised fears over whether France can meet its EU deficit commitments although the government has stuck to its 2007 growth forecast of 2.0-2.5 percent.
France is forecasting a budget deficit of 2.4 percent of gross domestic product in 2007, down from 2.5 percent in 2006.
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