France lowers 2016 budget gap to 68.9 bln euros

France, one of Europe's leading economic powerhouses, managed its public finances better than expected in 2016 with its budget deficit at 68.9 billion euros (73.6 billion U.S. dollars), down 1.4 percent from a previous estimate, Finance Minister Michel Sapin announced Tuesday.

Compared to 2015 fiscal performance, the budget gap was lowered by 1.5 billion euros last year, reaching its lowest level since 2008, according to the minister.

"Seriousness in budget managing allows this year to pursue recovery of public accounts, while ensuring financing of government's priorities, mainly security and employment," Sapin said.

"These results confirm the government's deficit forecast of 3.3 percent in 2016 and boost credibility to lower the rate under 3 percent in 2017," he said.

Last year, the government "has achieved its spending target," by lowering the state's expenditure to 294.8 billion euros, down by 2.9 billion euros compared to a year earlier, the official said.

In 2015, France has lagged its European partners in emerging from stagnated economy and restoring its public finances.

It had broken its financial pledge to reach the safe line of 3 percent mandated by the European Union which had offered Paris a two extra years to put its finances in order. (1 euro = 1.07 U.S. dollars) Endit