–Adds Details On Revenues From Press, Analyst’s Estimate Of Deficit
PARIS (MNI) – France has undershot its public deficit target for
last year, Prime Minister Francois Fillon indicated Monday. This should
give it a modest headstart for the more challenging reduction looming
this year.
The central government’s deficit should come in E4 billion less
than the most recent budget projection of E95.3 billion, “which means
that the public deficit for 2011 will very probably be less than the
5.7% of GDP we had pledged,” Fillon told the press in his New Year’s
greetings.
While conceding that conditions were “very difficult”, Fillon
insisted on the need for further deficit reductions. This year’s target
is 4.5% of GDP, ahead of an expected return below the Maastricht ceiling
of 3% in 2013.
The French daily Le Figaro reported later Monday that the central
government deficit narrowed to just under E91.5 billion, thanks to
above-target revenues and calendar effects.
Tax revenues were E1.1 billion over target, while the sale of
mobile phone licences netted a one-off E800 million, the newspaper said
without naming sources. In addition, a E900 million loan to Greece will
be shifted to the 2012 budget.
The lower deficit suggests that last year’s public deficit could
fall to 5.5% of GDP, estimated economist Dominique Barbet of BNP
Paribas.
–Paris newsroom +331 4271 5540; Email: ssandelius@marketnews.com.
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