Proposals to cut spending by raising the pension age have sparked protests in France
The French government plans to cut civil service staff levels and do away with some tax breaks to try to close its budget deficit.
But its latest Budget also relies on economic growth of 2% for 2011, above the 1.3% consensus forecast, to close the gap.
The government forecasts a record deficit of 7.7% of GDP this year, 6% in 2011, and hopes to hit 3% by 2013.
That would bring it within the European Commission's economic rules.
Part of its civil service cuts include allowing more than 30,000 staff to retire without replacing them, in the continuation of an existing policy of replacing only 50% of retiring bureaucrats.
Tax breaks worth 10bn euros (£8.6bn; $13.6bn) will also be withdrawn, but no new taxes will be introduced.
"The strategy excludes any notion of a generalised tax rise, as this would penalise economic growth," said a presidential statement.
Although the growth forecast for next year is above the consensus forecast by economists, Dominique Barbet, of BNP Paribas, welcomed the budget and said it would allow France to reduce its deficit to 6% of GDP by 2011.
He said: "I think it is quite smart. The government has taken a cautious approach in its estimate on fiscal income."
However, the former Socialist presidential candidate, Segolene Royal, said earlier on Wednesday that the budget would introduce "the highest tax hike since 1995 except for the very rich".
She told France 2 television that "public debt has doubled in five years... the government is today borrowing a billion euros a day and the government is going to get back only 10 billion" by closing tax loopholes in the budget.
France is also taking steps to reduce its borrowing by containing total spending at 286.4bn euros (£246.8bn, $390bn), 714m euros higher than in 2010.
France has already seen demonstrations over a plan to cut state spending by raising the pension age to 62 years from the present 60 years.
Deficit watch
The French budget comes as the Commission unveils plans to fine countries that do not manage their finances or their economies properly.
The Commission's new rules will require national governments not only to keep their deficits within the current limit of 3% of GDP, but also to actively reduce their total debt towards 60% of GDP.
The French government has said these are too harsh.
France's Finance Minister Christine Lagarde told a press briefing after the budget announcement that national governments, and not unelected bureaucrats, should have the overriding say in any decisions over fines and sanctions.
She said the French position was "very clear: in favour of strengthening the stability and growth pact, but not at the price of removing all political input".
"France considers that politicians must have a say," she added.
