Following his promise of a renewed and transformed French economy during the campaigns, President Emmanuel Macron’s administration has planned to cut French public spending to its lowest level since the start of the financial crisis next year and squeeze the tax take to its lowest since 2010, Bloomberg reports.
France Finance Minister Bruno Le Maire said on Tuesday that the plans will cause government expenditure to fall to 53.9 percent of output in 2018 coupled with tax revenue declining to 44.3 percent. Also, the country’s budget deficit will amount to 2.9 percent of gross domestic product in 2017 and 2.6 percent in 2018, with other sources of revenue such as dividends from state companies supplementing income from taxes.
Keying into the European Commission and the International Monetary Fund’s years of recommendation, Macron who has been widely criticised for his policies since assumption will have his labour market reform come to implementation on Friday.
The Finance minister added, “This is a bit better than we had indicated. We’re the developed country with the highest public spending,” emphasising that the government’s goal is to squeeze spending to just over 50 percent of GDP by the end of its mandate.
Meanwhile, French public sector unions have scheduled a strike for Oct. 10, apparently due to the new development.
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