France's government has confirmed its expectation that the budget deficit will rise to 6.1% of economic output in 2024, as the country grapples with the consequences of unexpectedly weak tax revenues.

In response to this, the government has taken measures to mitigate the financial strain, including cancelling some planned spending initiatives.

This updated forecast was reiterated by the finance ministry in an end-of-year budget bill presented to the cabinet on Wednesday. 

The bill outlines a reduction in central state spending, which will be approximately €6 billion lower than what was originally planned a year ago.

This decrease in spending is partly due to the cancellation of credits across various ministries. These credits had been put on hold earlier this summer when public finances worsened, a move initiated by the previous administration, Bloomberg reports.

In 2024, France was forced to implement emergency measures to reduce expenditures after disappointing tax receipts resulted in a significant gap in public finances. 

Initially, the budget for this year had projected a deficit of 4.4% of GDP, but the reality has required larger cuts.

In addition, the bill presented to the cabinet on Wednesday includes provisions for €4.2 billion in unplanned spending. This spending will support Ukraine, as well as France's overseas territory of New Caledonia. 

The funds will also cover the costs associated with holding snap elections and providing bonuses for security forces working overtime during the Olympic Games.

Lawmakers are scheduled to begin discussions on the bill later this month, though it will be handled separately from the 2025 budget.

Given the government's lack of a majority in the National Assembly, it is likely that it will have to use a constitutional provision to pass the end-of-year budget without a formal vote.