The French government plans to subject the budget to a 60 billion euro belt-tightening drive next year to hit new fiscal targets, officials said on Wednesday, outlining an unprecedented push to rein in France's spiralling deficit.

France plans around €60 billion ($66.4 billion) in spending cuts and tax hikes next year as Prime Minister Michel Barnier seeks to claw back a widening budget deficit and bolster investor confidence in the country.

Prime Minister Michel Barnier announced steep spending cuts and tax hikes for France's biggest companies and wealthiest individuals on Tuesday, saying there was no other way to narrow a gaping budget deficit.

French Prime Minister Michel Barnier delayed a target to bring the budget deficit within the European Union limit by two years to gain breathing space as he tries to repair the country’s public finances.