PARIS: France's public sector debt will rise to 1.95 trillion euros by the end of 2014, or 95.1 percent of economic output, up from 93.4 percent of GDP this year, a media report said on Monday.
France revised its public deficit forecasts on Sept. 11, acknowledging it would take advantage of an extra two years granted by the European Union in order to put its finances back on track while preserving fragile growth.
Citing unidentified sources, Le Figaro said the debt would not fall until 2015. "The 2014 peak reflects the public deficit situation," a government official told the newspaper.
"We are at a summit and that needs to change."
Facing weak tax revenue as the economy struggles to gain momentum, Hollande's government has raised its public deficit targets to 4.1 percent of national output this year from 3.7 percent previously.
It also lifted next year's target to 3.6 percent, up from an initially projected 2.9 percent, taking advantage of the two extra years to bring its deficit down to an EU limit of 3 percent.
The government also trimmed its 2014 growth forecast last week to 0.9 percent from 1.2 percent previously although it confirmed an estimate 0.1 percent for growth this year.
Public sector debt, which includes central government, welfare and local authority debt, stood at 90.2 percent of GDP at the end of last year.
The French government had been counting on public debt to peak in 2014 at 94.3 percent of GDP.
indiatimes.com
France revised its public deficit forecasts on Sept. 11, acknowledging it would take advantage of an extra two years granted by the European Union in order to put its finances back on track while preserving fragile growth.
Citing unidentified sources, Le Figaro said the debt would not fall until 2015. "The 2014 peak reflects the public deficit situation," a government official told the newspaper.
"We are at a summit and that needs to change."
Facing weak tax revenue as the economy struggles to gain momentum, Hollande's government has raised its public deficit targets to 4.1 percent of national output this year from 3.7 percent previously.
It also lifted next year's target to 3.6 percent, up from an initially projected 2.9 percent, taking advantage of the two extra years to bring its deficit down to an EU limit of 3 percent.
The government also trimmed its 2014 growth forecast last week to 0.9 percent from 1.2 percent previously although it confirmed an estimate 0.1 percent for growth this year.
Public sector debt, which includes central government, welfare and local authority debt, stood at 90.2 percent of GDP at the end of last year.
The French government had been counting on public debt to peak in 2014 at 94.3 percent of GDP.
indiatimes.com
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