The French government has pledged to cut taxes for households next year to the tune of 9 billion euros ($9.8 billion), a spending boost that has its roots in the yellow vest movement that broke out last winter.

File photo: VCG

Finance Minister Bruno Le Maire presented the 2020 budget to Cabinet on Friday and said the government is also seeking to boost investment by cutting taxes for business by 1 billion euros.

The government expects the budget deficit to fall from 3.1% in 2019 to 2.2% next year. That would be France's lowest since 2001.

The 2020 budget is based on a growth forecast of 1.3%.

The package comes in response to the yellow vest protests against social injustice and the high cost of living. The movement petered out this summer.