Speaking on Europe 1 radio, Baroin said his ministry might need to bring in 10 billion euros ($13 billion) next year by cutting back on an array of tax breaks — the second time in just two days that the government has had to increase this figure.

The economy ministry originally said it wanted to raise 2 billion euros from this measure in 2011, then raised the figure to 5 billion. On Friday Prime Minister Francois Fillon said it could climb to 8.5 billion euros, "depending on the situation."

But Baroin said even 8.5 billion euros might not be enough.

"We proposed 5 billion euros a few weeks ago for next year and I think we'll have to be closer to 10 billion ... so that we can meet our goal, which is unavoidable, of lowering our deficit from 8 percent (of GDP) to 6 percent," he said.

The government estimates that tax breaks cost the French treasury some 75 billion euros a year and it has already said it will continue to attack this mass of loopholes, often intended to encourage investment and employment, in 2012 and 2013.

The government has promised the European Union that it will get its deficit back to 3 percent of gross domestic product (GDP) in 2013 from 8 percent this year, basing its forecasts on the assumption that the economy will grow 2.5 percent from 2011.

Although many economists say this is overly optimistic, Baroin said it was "ambitious but achievable." He also said the economy would grow 1.4 percent this year as forecast.

"Revenues from corporate tax these last few weeks shows that things are on track. There won't be unpleasant surprises as far as growth is concerned," he said.

The minister reiterated that the government did not plan any generalized increase in direct taxation in its forthcoming budget, which will be unveiled at the end of September.

"We are doing everything possible to avoid austerity. Austerity would act as a brake (on growth)," he said, adding that the government could raise money by cutting spending.

Public spending accounts for 54 percent of gross domestic product in France — the highest level in the euro zone.

"We have more room for maneuver on spending because we spend more (than EU partners)," he said.

Many of France's neighbors have openly embraced austerity to try to improve state finances that were ravaged during the 2009 recession, with Britain last week announcing comprehensive tax increases and public spending cuts.

Although France faces similar budget woes, ministers have studiously refused to talk in terms of austerity, for fear of alarming the country's notoriously grumpy electorate.

However, Baroin confirmed that the government would cut its operational costs by 10 billion euros between 2011 and 2013 and said he wanted to see no increase to civil service wages beyond automatic hikes already written into their contracts.

"Everyone has to make an effort," he said.