Factbox-What is in France's 2027 budget?

France's 2027 Budget: Major Tax, Spending, and Pension Reforms Detailed

Overview of France's 2027 Budget Proposal

PARIS, Oct 1 (Reuters) - French Prime Minister Sebastien Lecornu's government delivered its 2027 budget on Thursday, including a package of measures meant to get its deficit-reduction plans on track with targeted savings and tax increases.

The following are the main new measures in the bill that was sent to lawmakers, who will likely amend the legislation substantially in parliament in the coming weeks.

Main Tax Measures

Employer Payroll Contributions

Employer payroll contributions: A reduction in a tax break employers get on low and mid-level salaries if their employees receive bonuses such as profit-sharing or incentive schemes. It would raise about €3.8 billion ($4.29 billion) in 2027.

A freeze on tax relief on low-wage payroll contributions, to raise €2.9 billion.

Pension-Related Tax Changes

Pensions: A €3,000 cap on a tax break for retirees' professional expenses, to raise €1.4 billion.

Other Tax Increases

Motorway Concessions

Motorway concessions: An increase in a tax on long-distance transport infrastructure, which could raise about €800 million more per year.

Sugar Tax

Sugar tax: An extension on a levy on sweetened drinks to include ultra-processed foods high in sugar, to bring in €300 million.

Spending Measures

Pension Spending Adjustments

Pensions: Those over €1,260 a month will not be increased in line with inflation, saving €4.1 billion. A reduction in a tax break that retirees receive for professional expenses, to bring in another €1.4 billion.

Health and Sick Pay Reforms

Health Spending

Health spending: Measures, including cuts to medicine prices, to keep it in check and save about €4 billion.

Sick Pay

Sick pay: Reforms to allowances made to workers when they are on sick leave, aimed at saving €1 billion. A lowering in the ceiling on sick pay for work accidents, to generate €800 million in savings.

($1 = 0.8854 euros)

(Reporting by Leigh Thomas; Editing by Andrew Heavens)