13 September 2001, 11:34 French 2001 budget deficit seen 211 bln ffr vs 186 forecast - report
PARIS (AFX) - The final budget deficit for 2001 is expected to rise
to 211 bln ffr, above the government's forecast of 186 bln for the full
year, according to unnamed sources in a report in Les Echos.
The increase is due to a projected 25 bln ffr shortfall in tax
receipts this year stemming from the slowing French economy.
However, budget spending will represent 1.5 pct of GDP this year,
and is likely to remain at this level in 2002, the report said.
Since Finance Minister Laurent Fabius has projected that growth
will increase next year, the budget deficit projected for 2002 should
be below the 2001 deficit.
To accomplish this, the Finance Ministry will require additional
cash transfers from "dormant treasuries" such as the state-owned Caisse
des Depots et des Consignations (CDC) or Coface, the report said.
Fabius will present next Tuesday the government's financial budget
for 2002.
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