France’s state budget deficit widened to EUR 159.6 billion in the January-August period from EUR 157.5 billion a year earlier. Expenditure rose 4.4% year-on-year to EUR 362.97 billion, driven mainly by higher debt-servicing costs amid rising interest rates and inflation, increased military spending, and higher public energy service charges (CSPE). Meanwhile, general budget revenue increased 3.1% to EUR 228.55 billion. Net tax revenue rose to EUR 206 billion, supported by higher net personal income tax, the State’s share of net VAT revenue, net corporate income tax, and other net tax revenue. Non-tax revenue increased to EUR 18.9 billion, mainly due to the return to the State in January 2026 of EUR 6.9 billion in non-consumable endowments allocated under the Future Investment Programs (PIA) in 2010 and 2014, which had reached maturity. Special Treasury accounts posted a EUR 25.2 billion deficit, an improvement of EUR 6.3 billion from the end of August 2025.