The government is set to present a supplementary finance bill (PLFR) on June 2, which includes an additional 15 billion euros in emergency measures, primarily aimed at funding partial activity and providing targeted aid to struggling businesses.
Growth did not ultimately materialize in the first quarter in France, according to figures published by Insee, with a decline in the gross domestic product (GDP) of 0.1%, whereas an initial assessment had indicated growth of 0.4%.
The state budget deficit will rise to “around 220 billion euros” in 2021, compared to the 173.3 billion initially forecasted in the finance law, declared the Minister of Public Accounts, Olivier Dussopt, on Saturday, May 29. This worsening of nearly 47 billion in the budget deficit is “a consequence of the support measures we continue to take to best support the recovery,” according to the minister.
The public deficit, which also includes deficits of social security and local authorities, had been forecasted at 9%, which was expected to increase public debt to 118% of its gross domestic product.
