France's 2025 Budget Faces Rigorous Scrutiny Amid Forecast Concerns

France's 2025 budget is under scrutiny by the Public Finance High Council for optimistic economic forecasts. The watchdog highlights the importance of preparing contingency plans to address potential shortfalls. The budget predicts a 0.9% growth and a 5.4% deficit, amidst damaged fiscal credibility.


Devdiscourse News Desk | Paris | Updated: 30-01-2025 02:52 IST | Created: 30-01-2025 02:52 IST
France's 2025 Budget Faces Rigorous Scrutiny Amid Forecast Concerns
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France's 2025 budget proposal is drawing critical attention from the nation's independent fiscal oversight body. The Public Finance High Council reviewed the budget, currently navigating through parliamentary processes, and signaled that the underlying economic forecasts are slightly optimistic.

The budget anticipates a modest growth of 0.9% for the current year, alongside a projected budget deficit of 5.4% of GDP. These numbers are concerning to the fiscal council, given the country's recent history of deficit target overshoots, exacerbated by higher-than-anticipated spending and lower-than-expected revenue.

With past fiscal performance undermining economic credibility, the council emphasized the importance of readiness to implement necessary corrections. As the government navigates this fiscal territory, it must be prepared for potential revenue shortfalls or unexpected expenditures to maintain fiscal discipline.

(With inputs from agencies.)

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