PARIS, June 14 (Reuters) - France plans to pump an extra 3.5 billion euros ($4.92 billion) into stimulus measures earmarked for 2010 and is preparing to increase its public budget deficit forecast for 2009, Les Echos newspaper reported.
Ministers have been told most ministry budgets will rise very little, or even decline in real terms, next year, the newspaper said in a preview of the front page of its Monday edition.
Prime Minister Francois Fillon's government also plans to confirm cuts of 34,000 civil service posts next year, while the increase in spending will be limited to inflation, or 1.2 percent excluding the stimulus plan, the paper said.
On Friday, the French Budget Ministry said the budget deficit had risen to 71.9 billion euros at the end of April from 45 billion a year earlier.
Les Echos said a drop in tax from businesses and VAT would force the government to raise its deficit forecast for this year for a third time.
The government had predicted a record deficit of 104 billion euros this year.
It also said this week that it predicted a 3.0 percent decline in GDP this year, instead of a drop of 1.5 percent, which would lead to fewer receipts.
($1=.7108 Euro)
(Reporting by Tim Hepher and James Regan) Keywords: FRANCE BUDGET/ (paris.equities@reuters.com; +33 1 4949 5452; Reuters Messaging: tim.hepher.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Ministers have been told most ministry budgets will rise very little, or even decline in real terms, next year, the newspaper said in a preview of the front page of its Monday edition.
Prime Minister Francois Fillon's government also plans to confirm cuts of 34,000 civil service posts next year, while the increase in spending will be limited to inflation, or 1.2 percent excluding the stimulus plan, the paper said.
On Friday, the French Budget Ministry said the budget deficit had risen to 71.9 billion euros at the end of April from 45 billion a year earlier.
Les Echos said a drop in tax from businesses and VAT would force the government to raise its deficit forecast for this year for a third time.
The government had predicted a record deficit of 104 billion euros this year.
It also said this week that it predicted a 3.0 percent decline in GDP this year, instead of a drop of 1.5 percent, which would lead to fewer receipts.
($1=.7108 Euro)
(Reporting by Tim Hepher and James Regan) Keywords: FRANCE BUDGET/ (paris.equities@reuters.com; +33 1 4949 5452; Reuters Messaging: tim.hepher.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.