France‘s national debt is at a critical level”/>
Minister of Economy and Finance Antoine Arman did not rule out that servicing France’s unprecedented national debt will become the largest expenditure item in the republic’s budget.
“There is a critical situation in public finances related to servicing the public debt,” Arman admitted during a broadcast on X. “This could become the largest expenditure item in the budget.”
As Day.Az reports with reference to TASS, presenting the draft budget for 2025, Arman noted that the expenditure part of the 2025 budget will be reduced by €40 billion, and the revenue part will be increased by €20 billion. To increase revenues, the French authorities intend to in particular, increase taxation of the 400 largest companies.
In turn, Budget Minister Laurent Saint-Martin noted that the authorities are planning a gradual abolition of social protection measures introduced during the coronavirus pandemic. This, in particular, concerns the “tariff shield”, which blocked the increase in electricity tariffs for the least affluent part of the French.
According to the government’s plans, total budget revenues next year could amount to €536 billion, and expenses – €684 billion. Thus, the deficit could reach €148 billion.
By the end of September, France’s national debt had reached an unprecedented level of more than €3.2 trillion.