France's public sector budget deficit widened last year by more than the government planned, official data showed on Tuesday, putting pressure on Paris as it struggles to keep its deficit reduction plans on track.
Statistics agency INSEE said the 2023 public accounts showed a fiscal shortfall of 5.5% of economic output last year, up from 4.8% in 2022 and significantly more than the government's target for 4.9%.
In reaction to the data, Finance Minister Bruno Le Maire said that weaker than expected growth last year had translated into lower tax income, weighing on the deficit.
Though the government had warned in advanced the deficit would be worse than expected, it is still bad news because it means further additional budget savings need to be found this year to meet a 2024 deficit target of 4.1%.
The government has already flagged 10 billion euros ($10.9 billion) in extra budget cuts this year and said it might need to pass legislation mid-year to come up with additional savings.
"I'm calling for a collective wake-up call to make choices in all of our public spending," Le Maire said on RTL radio.
He added he remained committed to reducing the deficit to below an EU limit of 3% by 2027 and ruled out increasing taxes.
Rating agencies are due to provide updates in April and May.
INSEE also said France's public debt stood at 110.6% of GDP at the end of the fourth quarter of 2023, versus 111.9% at the end of the fourth quarter of 2022.
