While the new government finalizes its implementation, Michel Barnier as well as Laurent Saint-Martin, his Minister of Budget and Public Accounts, will present, this Wednesday, October 10, the 2025 finance bill.
A new project presented. The new government, led by Michel Barnier, is preparing to unveil the broad outlines of its budgetary policy. This Wednesday, October 10, the Prime Minister and his Minister of Budget and Public Accounts, Laurent Saint-Martin, will present to the Council of Ministers the finance bill for 2025.
This project notably provides for a reduction in public spending of around 40 billion euros. To achieve this, the government will have to optimize tax revenues and identify the lowest priority expenditure items.
VAT, the main state income
Value added tax (VAT) is the main source of government funding. In 2023, it brought in more than 208 billion euros, almost half of which was directly returned to state coffers. This tax is collected on the vast majority of products sold in France.
Still in the area of consumption taxes, the internal tax on final consumption of electricity and other internal taxes brought 2.4 billion euros to this category of state income.
Income and corporate taxes
In 2023, household income taxes are the second largest source of state revenue. The latter recovers all of the revenue from the 94.9 billion euros collected.
On the company side, the State also collects 100% of the revenue collected. In 2023, no less than 58.5 billion euros will enter state coffers. VAT as well as income and corporate taxes represented 66% of tax revenue.
