France's budget gap widens to 124.9 bln euros in June

Source: Xinhua | 2020-08-05

France's budget deficit has widened to 124.9 billion euros (147.34 billion U.S. dollars) at the end of June from 77.3 billion euros in the same month a year ago, official figures showed on Tuesday.

In its monthly report, the Ministry in charge of Public Accounts attributed the deficit gap "to the effects of the (health) crisis."

Over the period, public expenditure valued 198.5 billion euros in total, up by 24.3 billion euros from June 2019, as the government had pumped in more cash to cushion the economic fallout of the coronavirus epidemic. That included 13.5 billion euros to finance partial unemployment scheme and additional 4.9 billion euros devoted to the enterprises solidarity fund.

At the end of June, revenues of Europe's second largest economy stood at 125.8 billion euros, down from 142.7 billion euros collected in the same month last year, mainly due to a 10.6-percent fall in net tax income.

For the full year, the French government expected the budget gap to reach 220 billion euros, or 11.4 percent of the gross domestic product (GDP), the country's worst post war deficit due to costly measures to help the economy recover and save jobs. (1 euro = 1.179 U.S. dollar)