He suggested not replacing one in three public servants who retire or quit, and freezing public salaries.
The auditors proposed cutting jobs in France's large civil service, on both a national and local level, and ending tax breaks and loopholes.
Hollande has promised 60,000 new education jobs after many were cut under Sarkozy. But Hollande said he will make up for each new teaching job by cutting another government job elsewhere.
The audit comes days after Hollande helped push through a €120 billion growth package at European Union talks in Brussels. Hollande insisted that an earlier European pact on budget-cutting across the eurozone was hurting workers too much and urged government stimulus to boost growth.
Thibault Leroux in Paris contributed to this report.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.