Black Friday Sale! Save huge on InvestingProGet up to 60% off

UPDATE 1-French minister sees 10-12 bln euros tax shortfall

Published 01/04/2009, 05:25 AM
Updated 01/04/2009, 05:30 AM

(Adds details)

PARIS, Jan 4 (Reuters) - French tax revenue for 2008 will be between 10 billion euros ($13.9 billion) and 12 billion lower than forecast in the government's original plans, Budget Minister Eric Woerth said on Sunday.

Speaking on Europe 1 radio, Woerth noted the original 2008 budget had forecast 271 billion euros in tax revenue.

"In fact, I think we will be around 260, that's to say there will be a gap of 10 to 12 billion euros compared with the forecast. That's about 5 percent," he said.

Company tax revenue would be about 4 to 4.5 billion euros below initial estimates, while sales tax receipts were also weaker, he said.

He said the 2008 deficit would be impacted by the shortfall.

"We were hoping that the deficit would be of the order of 51 to 52 (billion euros). In fact, it will be around 56 or 57 billion euros," he said, adding that more detailed estimates would be available by the end of the month or early February.

He said 2009 tax receipts would probably be affected as the decline in 2008 revenue would have a knock-on effect.

But he declined to be more specific given the uncertainties ahead and the likely impact of the government's stimulus package, which would cost money but also boost activity.

"We'll see how it turns out," he said, adding there would be no change to the government's 2009 growth forecast of 0.2 to 0.5 percent for the moment. (Reporting by James Mackenzie; Editing by David Holmes)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.