"In this budget, $19.9 billion of savings are to be made. This is an unprecedented effort but at the same time will save our social model," Ayrault said.
Radio France Internationale reported Wednesday that the bulk of the spending cuts would come from local and national government budgets and that an additional $7.9 billion to be slashed out of the welfare system's budget.
Ayrault also said there would be no additional hikes to the nation's sales tax, which is called a value added tax in Europe.
French lawmakers are scheduled to review the administration's budget proposals beginning Sept. 25, the news agency said.
Finance Minister Pierre Moscovici said said Wednesday that France's budget deficit will come in at 4.1 percent of GDP this year and drop to 3.6 percent in 2014 and 3 percent in 2015.
The European Union's recommendation is for the annual deficit to stay at or under 3 percent.
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