French government has announced a plan to significantly reduce its budget deficit, and the political wrangling it sets off could jeopardize the prime minister's position and heighten investor concerns about French debt.

In the last fiscal plan before next year's election, French government ministers on Thursday revealed details of a fiscal "effort" package totaling 54 billion euros ($61.2 billion), aimed at curbing runaway spending and reducing the fiscal deficit as a share of gross domestic product from 5.4% this year to 5% by 2027.

Prime Minister Sebastien Lecornu has signaled he will seek savings from sensitive spending items including pensions, public sector wages, and government-funded sick leave benefits.

He also stated that despite opposition from business groups, a one-time tax imposed on large corporations starting in 2025 will be extended at least in part.

After the budget was submitted to the cabinet, French Finance Minister Roland Lescure told reporters that approximately 60% of the fiscal adjustment will be achieved through expenditure-side measures.