Budget 2026 revenue section rejected by lawmakers in committee

Friday 09 January 2026 - 14:00

By: Sahili Aya

Budget 2026 revenue section rejected by lawmakers in committee

France’s draft Budget for 2026 suffered a significant setback on Friday after lawmakers in the National Assembly’s Finance Committee rejected the revenue section during a new reading. The vote sends a negative signal ahead of the full parliamentary debate, which is set to begin next week in the chamber.

Only the EPR group, aligned with former prime minister Gabriel Attal, supported the text, mirroring its stance during the first committee review. Opposition to the revenue measures was broad, with lawmakers from the left, the far right, and the Horizons group voting against it, while MoDem and the independent Liot group chose to abstain.

Although committee votes are consultative and do not determine the final outcome, the discussions failed to reveal any clear path toward a political compromise. This uncertainty strengthens the likelihood that the government may resort to Article 49.3 of the Constitution to pass the budget without a vote, a move that would expose it to a potential motion of no confidence.

During the committee debates, lawmakers reduced projected tax revenues by an estimated several hundred million euros compared with the version adopted by the Senate. This figure does not include the potential impact of a revised wealth tax proposal supported by the Socialist Party, which advocates a broader levy on high assets.

Several points of disagreement remain unresolved, particularly regarding corporate taxation. While the left has called for a higher temporary tax on large company profits, conservative lawmakers have pushed for a more limited approach, and no consensus was reached. As a result, some proposed revenue measures were removed altogether.

Despite these divisions, lawmakers did agree on certain provisions, including a full adjustment of income tax brackets to inflation and the retention of tax relief for education expenses and pensioners. Other planned tax increases, notably those affecting motorists, were also abandoned.

As parliamentary scrutiny now shifts to the expenditure side of the budget, the rejection of the revenue section underscores the fragile political balance surrounding the 2026 financial bill and the challenges facing the government in securing its adoption.