French Fiscal Watchdog Sees Smaller Deficit Than Expected by Government

French Fiscal Watchdog Sees Smaller Deficit Than Expected by Government
A view shows the Bercy Economy and Finance Ministry on the day the government unveils budget plans for 2019, in Paris, France on Sept. 24, 2018. Christian Hartmann/Reuters
Reuters
Updated:

PARIS—France’s public sector budget deficit is likely to come in smaller than expected this year and any extra tax income should go towards reducing the public debt, the budget oversight panel said on Wednesday.

The government is forecasting a budget deficit this year of 8.4 percent of gross domestic product, falling to 4.8 percent next year as the economy recovers from the coronavirus crisis and support measures are withdrawn.