France's 2016 budget draft projects 16-bln-euro cut in spending to meet targets

The French government on Wednesday unveiled its financial roadmap for next year in which the government pledged to further cinch the belt in order to honor its promise to reduce the budget gap to 3.3 percent in 2016.

During a weekly cabinet meeting, Finance Minister Michel Sapin announced 16 billion euro (17.93 billion U.S. dollar) of savings next year, up from the 14.5 billion euros previously estimated, which would lower the budget gap by 5.0 percentage points compared to 3.8 percent expected in 2015.

The budget draft pledges to bring the figure down to under 3.0 percent, the rate mandated by EU by 2017.

Following the creation of 8,304 jobs in public offices, mainly in defense, public expenditure would increase by 1.3 percent against 1.0 percent set for 2015 and compared to an annual rise of 3.2 percent for the 2002 to 2007 period.

Looking to next year's growth, the ruling Socialists forecast the national wealth of the eurozone's second-leading power to be 1.5 percent, unchanged from their initial estimate.

In 2015, they target a 1.0-percent rise in the country's gross domestic product (GDP), "the first year of effective recovery, after three years of slowing activity," and which would help start creating jobs and improve investment, according to Sapin.

Following expected recovery and a lower budget gap, France's public debt would be at 96.5 percent of GDP in 2016 before gradually going down.

To French President Francois Hollande, next year's budget was "a confirmation of the five-year commitments," to put public finances in order.

However, far-right leader Marine Le Pen denounced the 2016 budget draft as having "an unrealistic economic growth," adding it was based on "insincerity," and "cautious" estimates. Endit