Prime Minister Jacques Chirac said thebudget deficit next year will be reduced by about 15 billion
francs, and the government's planned programme of 50 billion
francs' tax cuts for 1987/88 will be implemented, a statement
from the Prime Minister's office said.
    The forecasts were contained in a letter of guidance to
ministries to prepare for the 1988 budget to be voted by
Parliament in autumn.
    Finance Minister Edouard Balladur plans to cut the 1988
budget deficit to around 115 billion francs from the forecast
1987 deficit of 129 billion, and to 100 billion francs in 1989.
    Chirac's statement said that to achieve the twin aims of
reducing the deficit and granting tax relief "a vigourous effort
to contain spending will have to be made."
    As in his letter to ministries last year, Chirac repeated
the aim to reduce by 1.5 pct the number of civil servants
except those in teaching or the security services.
    Budgetary adjustments made by the various government
ministries will collated by Balladur in mid-July, who will then
present them to the Prime Minister.
 REUTER
