France’s public accounts for last year showed a fiscal deficit of 5.5 per cent of economic output, up from 4.8 per cent in 2022 and significantly more than the government's target of 4.9 per cent, according to the National Institute of Statistics and Economic Studies (INSEE).

The country’s public debt was 110.6 per cent of GDP at the end of the fourth quarter (Q4) last year versus 111.9 per cent at the end of Q4 2022, INSEE said.

Tax revenue was €21 billion ($22.8 billion), lower than expected last year and spending on unemployment benefits and outlays by local governments was higher than expected, said finance minister Bruno Le Maire, calling for a reduction in public spending.

"We have to firmly abandon all spending that does not yield the expected results," he was quoted as saying by a global newswire. Local governments would also be advised to squeeze budgets.

The 2024 deficit target is 4.4 per cent.

The government is committed to reducing the deficit to below an European Union limit of 3 per cent by 2027, the minister said, ruing out raising taxes.

The government, which has earmarked €10 billion (~$10.79) in extra budget cuts this year, said it might need to pass legislation mid-year to come up with additional savings.

Fibre2Fashion News Desk (DS)

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