Budget 2027: the government proposes to freeze family allowances and reduce the number of civil servants
Sébastien Lecornu and his ministers unveil a “recovery budget” for France, with 54 billion euros in savings to be found for 2027, including 43 billion via new measures.
What you need to know
What budget for France in 2027? On Thursday, October 1, the government presents its finance bill (PLF) and that of Social Security (PLFSS). The texts will then be examined by Parliament this fall. The government intends to reduce the deficit to 5% of GDP in 2027, in particular thanks to “the implementation of 43 billion euros” of new “recovery measures”. Added to this are "the ramp-up" of previous decisions aimed at bringing "all efforts" in 2027 to "54 billion euros", writes the government. Among the measures announced: the freezing of family allowances, a tax on sweet products, the end of "rents" to support renewable energies, the extension of the differential contribution on high incomes, a reduction in the number of civil servants, a tax on kerosene suppliers... Follow our live stream.
A tax on sweet products on the table. The Minister of Commerce, Serge Papin, announced Wednesday that a new tax on sweet products was "one of the things that are on the table" of the government in the 2027 budget.
De-indexing or under-indexing of pensions? The government wants to "almost halve" the Social Security deficit, according to the Minister of Labor, Jean-Pierre Farandou. The executive intends in particular to save 5.5 billion euros by slowing down the "mechanical progression" of retirement spending, including 4.1 billion via de-indexing or under-indexing of pensions above 1,260 euros.
Sébastien Lecornu is sounding the alarm. “Reality is catching up with us,” the Prime Minister warned on Tuesday about X, citing the rise in the cost of France’s debt. The country currently borrows with a 10-year maturity at 4.77%, just a few points from its record of 2008, at the height of the global financial crisis.
Concretely, this is "an extension to ultra-processed solid products contributing the most to overconsumption of sugar from the tax on sugary drinks", we can read in the government document. The measure was mentioned by the Minister of Commerce, Serge Papin, yesterday.
In a press release published Monday, Ania (National Association of Food Industries) already denounced the project of this tax. Ania vigorously protests against this tax, which "will inevitably end up on the shelves and will hit hard the purchasing power of the French, at the very moment when everything suggests a significant return of inflation. This tax will finally trigger a chain reaction from which no one will escape unscathed."
The government confirms the introduction of a tax on sweet products in its draft Social Security budget.
This "contribution", which would concern fuel suppliers in "the metropolitan territory", would be calculated "in proportion to the volumes of fossil kerosene released for consumption", specifies the government.
A tax on kerosene suppliers is planned by the government, in order to finance the development of projects in sustainable (non-fossil) fuels for aviation.
“The back-to-school allowance will thus be reformed, while the amount of family benefits will be maintained in 2027 at its current level,” we can read in the government document, consulted by franceinfo.
The government is proposing a freeze on family allowances, according to the Social Security financing bill.
In its draft budget, the government wants to make the financing of renewable energies "more efficient" by putting an end to the "excessive remuneration" of the oldest support schemes, described as "rents". It intends to “make the financing of renewable energies more efficient by notably putting an end to excessive remuneration for support schemes and potential rents inherited from historical schemes”, according to the text.
The government expects increased tax revenues from VAT and income tax in 2027, according to the draft finance law, unlike corporate tax, whose revenues would decrease compared to 2026. Revenues linked to VAT would increase by more than 7 billion euros compared to 2026, those from income tax would increase by 5.7 billion euros, while corporate tax would see its revenues decrease by 1.8 billion euros.
The government also hopes to generate 600 million euros in revenue by extending into 2027 the “differential contribution to certain taxpayers with very high incomes”. This tax, introduced in 2025 and renewed in 2026, ensures a minimum tax of 20% of the highest incomes (single individuals with more than 250,000 euros of tax income and couples with more than 500,000 euros).
The number of civil servants must fall in 2027, says Bercy, by around 1,076 full-time equivalents. The balance of creations stands at 6,816 full-time jobs (FTE), mainly in the Ministry of National Education (+3,257 FTE), the Ministry of the Armed Forces and Veterans Affairs (+2,090 FTE), the Ministry of the Interior (+1,381 FTE) and the Ministry of Justice (+1,301 FTE).
