France's budget deficit widened to 145.9 billion euros in the first seven months, as spending growth continued to outpace revenue

(1) The French national budget deficit expanded to 145.9 billion euros from January to July 2026, compared to 142.0 billion euros in the same period last year, with expenditure growth continuously outpacing revenue growth. (2) General budget revenue increased by 4.2% year-on-year to 201.2 billion euros, while expenditure grew by 4.6% to 284.2 billion euros. (3) After deducting tax refunds and rebates, net tax revenue rose to 182.9 billion euros, supported by increases in personal income tax, VAT, corporate income tax, and other tax revenues. (4) Non-tax revenue also grew to 18.3 billion euros, mainly benefiting from the return of unused investment funds. (5) On the expenditure side, the figures reflect the impact of rising interest rates and inflation, increased military spending, and higher energy costs for public services. (6) The deficit in special fiscal accounts was 22.5 billion euros, narrowing from the 27.1 billion euros deficit in the same period last year.