It’s better, but it’s always too much. Between January 1 and June 30, 2025, state finances accused a deficit of 100.4 billion euros according to the data published this Tuesday, August 5 by the Ministry of the Economy. Despite this figure, still above the symbolic bar of 100 billion, the deficit in the first half marks a slight improvement of 3.1 billion compared to the same period in 2024.
After two years during which Bercy’s forecasts were never respected, the news has something to blow slightly. François Bayrou’s government plays its survival on the budgetary issue, with the examination in the fall of a very sensitive budget project, but must also respect the commitments made from the European Union, rating agencies, and therefore markets. At the forefront of these imperatives, the reduction of the public deficit, which must go from 5.8 % of the gross domestic product (GDP) to 5.4 %.
To achieve this, the State has notably frozen or canceled nearly 17 billion euros in credits since the late budget adoption on February 6. The measurement, as well as a decline in operating costs, made it possible to reduce public spending by 0.6 % despite the increase of 2.4 % of the payroll and interest on the debt (+ 6 %).
Another delightful explanation for Bercy, State revenues increased by 4.2 % thanks to the increase in gains from corporate tax (7.9 %) and stopping the price shield on energy. Black point: the French have massively chosen to save, which slowed down consumption, and therefore the recipes from the value added tax (VAT). The drop in interest rates of booklet A and the popular savings book on August 1 could remedy it.
While the State spent 44 % more than it collected in the first half of 2025, the news is a tiny clearing for François Bayrou, whose government remains in the face of “the Himalayas” of the 40 billion euros in savings which it seeks to find in the budget 2026. And the task still seems far from being accomplished: the plan to reduce public spending presented on July 15 and at the RN.
