France Publishes Q1 Tax Figures
09 May 2013
Posted by: Author: Ulrika Lomas
Source: Ulrika Lomas (Tax-News.com, Brussels)
The French Finance Ministry has recently published details of the country's public finance situation for the first quarter of 2013.
According to the Finance Ministry, the general state budget deficit stood at EUR31bn (USD40.5bn) at the end of March 2013, compared to EUR29.4bn the same time last year. As at March 31, 2013, state expenditure reached EUR90.2bn, compared to EUR87.2bn at the end of the first three months of 2012, marking a rise of 3.5%.
On the revenue side, general budget revenues stood at EUR69.6bn at the end of March 2013, compared to EUR68.2bn the same time the year before, representing an increase of 2.2%. At the end of quarter one this year, net fiscal revenues were up moderately by 3.3% on the year, standing at EUR68bn compared to EUR65.6bn the same time in 2012. The rise was largely due to collections of income tax and corporation tax. Revenue from income tax rose by 9.3%, standing at EUR18.6bn at the end of March (EUR17bn in 2012), while income from corporation tax rose 7.6% to EUR9.3bn at the end of the first quarter of 2013 (EUR7.9bn in 2012).
Revenues from value-added tax (VAT) and from the domestic tax on the consumption of energy products (TICPE) remained stable, due to the stagnant economic climate. Revenue from VAT increased by just 1.6%, standing at EUR33.6bn at the end of March (EUR33bn in 2012), while income from the TICPE tax fell 12.8%, to EUR2.7bn as at March 31, 2013 (EUR3.1bn in 2012).
The global development of net fiscal revenues is broadly in line with the most recent economic forecast, presented by the Government mid-April.
Although the French Government initially aimed to reduce the budget deficit to 3% of gross domestic product (GDP) this year, it has had to revise this figure upwards to 3.7%, as a result of the weak economic growth experienced at the beginning of the year.