PARIS, Oct. 10 (Xinhua) -- The French government unveiled its 2025 draft budget on Thursday evening, committed to bringing the deficit down to 5 percent of its GDP in 2025 from this year's 6.1 percent, by enacting 60.6 billion euros (66.3 billion U.S. dollars) worth of spending cuts and taxes hikes, according to local media reports.
Of the amount, 41.3 billion euros are expected to come from spending cuts, with the remaining from tax increases targeting high-revenue companies and high-income households.
Exceptional taxes are expected to be levied on large companies and individuals with very high incomes. The tax increase from the wealthiest incomes should generate an additional 2 billion euros in 2025.
More than 400 of the highest-earning corporations that have a turnover of more than 1 billion euros will be subjected to a 20 percent corporate tax. This tax should bring in 8 billion euros in 2025.
Moreover, there will be a reduction in the number of public sector staff, with 1,196 job cuts within the ministries and another 1,005 at public operators.
The education sector will be the most impacted sector with more than 4,000 teaching positions to be slashed.
Although the austerity budget is deemed essential for restoring public finances, it is likely to meet opposition, particularly in a fragmented National Assembly, according to local media. ■