France targets around 28 billion euros in two-year budget savings -fin min
* Govt seeks savings of 14 bln euros in 2014 and 2015
* 2013 deficit target of 3.7 of GDP in question
PARIS, July 2 (Reuters) - France aims to make budget savings of around 28 billion euros ($36.50 billion) over the next two years to restore public finances to order, Finance Minister Pierre Moscovici said on Tuesday.
The government is struggling to find the right balance between belt-tightening and tax increases as it seeks to rein in the public deficit without hitting the already faltering economy.
Speaking ahead of a parliamentary debate on next year's budget, Moscovici said that the government wanted savings of 14 billion euros in 2014.
"This government will keep a tight grip on spending," Moscovici said on BFMTV, adding that in 2015 savings "of the same order" as in 2014 were planned.
President Francois Hollande's government has raised taxes since it came to office in May 2012, but he has since promised the focus would shift towards belt-tightening over the rest of his five-year mandate.
Moscovici acknowledged that some tax would nonetheless have to rise in order to restore the public accounts, though he said it was too early to say which ones would be targeted.
After a series of tax hikes on companies since Hollande came to office, Moscovici said that corporate taxation would have to be mindful of not undermining firms competitiveness.
The government hopes to keep the public deficit to 3.7 percent of economic output this year, though Hollande has said it may come out higher because of weak growth and dwindling tax revenues. ($1 = 0.7671 euros)
($1 = 0.7671 euros)
(Reporting by Leigh Thomas Editing by Jeremy Gaunt)