The budget comes at a time of uncertain economic and political prospects.
The tax and spending cuts could prove crucial for the government and its record on the economy. Next year will also be the last full fiscal year before a presidential election in which Hollande could lose, if his low approval rating (at 23 percent, according to a September Ifop poll) are anything to go by.
Earlier this month, ratings agency Moody's downgraded France's government bond ratings from Aa1 to Aa2 due to what it called the "continuing weakness in France's medium-term growth outlook, which Moody's expects will extend through the remainder of this decade."
In addition, it said the downgrade was made with "the challenges that low growth, coupled with institutional and political constraints, poses for the material reduction in the government's high debt burden over the remainder of this decade" in mind.
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France's latest gross domestic product (GDP) data for the second quarter of 2015 showed growth was flat, yet the 2016 budget is predicated on a growth rate of 1.5 percent next year. It foresees 1 percent growth in 2015.
Despite the forecast leap in growth, and skepticism shared privately among economists, France's public finance watchdog said on Wednesday that it saw the 2016 growth forecast as "achievable."
There may be optimism within France but analysts elsewhere remain cautious, stating that reforms designed to boost French growth – ranging from labor law modernization to more business-friendly policies -- would take time to have an effect.
"The starting point for the 2016 budget is favorable and the deficit will probably continue to fall next year, although fiscal sustainability is not secured yet," according to chief European economist at Morgan Stanley, Carmen Nuzzo.
"Market participants should focus on the spending details, which will test the government's resolve to implement structural reforms," she said in a note last week.
- CNBC's Stephane Pedrazzi contributed reporting to this story.