NO FRENCH REFLATION, SOURCES CLOSE TO BALLADUR SAY There is no question of stimulating consumption or relying on a systematic budget deficit or other reflationary policies to boost the French economy, sources close to finance minister Edouard Balladur said. Their comments followed remarks by prime minister Jacques Chirac's spokesman Denis Baudouin, who said on Monday ministers were agreed on the desirability of "relaunching" the economy. This sparked speculation the government was preparing for a reflationary U-turn, but the finance ministry immediately ruled out any such move. The sources today said the government's policy remained one of "recovery," or sound finances and greater efficiency. They said that while 8.6 billion of the 30 billion franc revenues expected for 1987 from a sweeping privatisation program will go to providing public companies with fresh capital, 21.4 billion francs, or two-thirds, will go toward paying off national debt. Any further privatisation revenue this year above the 30 billion would be distributed between repayment of national internal debt and public companies in similar proportions, they added. The sources said it was absurd to talk of reflation when the country's internal debt, expected to grow by 10 pct this year from 1,300 billion francs in 1986 was growing twice as fast as gross domestic product. Nominal GDP is expected to grow by roughly five pct this year from 5,000 billion francs last year, broadly in line with earlier forecasts. Real GDP will grow by up to 2.5 pct. The sources said that with France's economic targets for 1987 roughly in line with its main trading partners, the government had no intention of pushing the economy to grow at an artificial pace out of step with neighbouring economies.