France could miss out on its deficit reduction target in 2024 as a result of overly optimistic tax expectations, and additional budget cuts could be needed, said the public audit office on Tuesday.

The government is planning to lower the public sector budget deficit to 4.4% of economic output this year, and in February announced a further €10 billion in cuts in order to hit the target due to weaker than forecast growth.

According to an annual report by the independent Cour des Comptes audit office, the additional cuts still may not be sufficient, and the government is urged to make further savings, Reuters news agency reports.

"The 2024 deficit forecast is optimistic, and even difficult to reach given the still too favourable forecasts for revenue growth," the report stated.

Last week, finance minister Bruno Le Maire said when last year's accounts have been finalised, the 2023 budget deficit would be "significantly above" the government's goal of 4.9% of GDP due to weaker than predicted tax revenue.

Furthermore, the audit office said the government should downwardly revise its tax revenue expectations, particularly as the economic growth forecast for 2024 was reduced to 1% in February from a prior 1.4%

Even though France's government has already unveiled €10 billion in cuts two months into its fiscal year, the impact on the budget has been impacted by steps to aid protesting farmers and additional support for Ukraine.

The finance minister added that new legislation may be required in the middle of the year to revise the 2024 budget, paving the way for a potential second round of cuts after the EU parliamentary elections in June, the Reuters report adds.

The government plans to reduce the deficit to under an EU ceiling of 3% of GDP by 2027, when President Emmanuel Macron's five-year term comes to an end.