2024 deficit seen at 5.6%/GDP (Il Sole 24 Ore Radiocor) - Paris, 03 Sep - France's public deficit could reach 5.6% of GDP this year and 6.2% in 2025 without spending cuts, according to a document presented to parliament by the finance ministry and viewed by AFP.

The finance minister Bruno Le Maire and the minister for public accounts Thomas Cazenave expressed concern about the "extremely rapid increase" in spending by local governments.

They also noted that tax receipt targets may not be reached as the current "composition" of economic growth is "less favourable" for the generation of tax income.

The ministry expects economic growth of 1.1% in 2024 against a previous forecast of 1.0%, as acquired growth in the first half of 2024 is stronger than forecast and GDP growth is expected to accelerate in the third quarter.

The government needs to introduce 60 billion euros in savings to achieve a public deficit of 4.1% in 2025.

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(RADIOCOR) 03-09-24 08:11:33 (0113) 5 NNNN