The French government is planning to increase the budget for its Overseas Territories Ministry by 10 percent, or about 320 million euros (38.2 billion francs), in 2027, according to a draft finance bill reviewed by the Associated Press (AFP). In total, overseas territories will receive 3.68 billion euros (439.1 billion francs) in funding for that year. Overseas Territories Minister Naïma Moutchou said that during a time of financial challenges, there was a particular risk to the budget for overseas territories, as all areas had to make cuts. However, she emphasized that the government is making a strong political choice to maintain the economic appeal of these regions.
About half of the budget for overseas territories is allocated to specific social contribution exemptions. These exemptions help reduce labor costs to address structural overcosts and productivity gaps in overseas economies, according to the French finance ministry, Bercy. To support the government of New Caledonia and boost its economy, 284 million euros (33.9 billion francs) is planned. In Mayotte, which faced the aftermath of cyclone Chido at the end of 2024, a "specific support" of 100 million euros (11.93 billion francs) to the departmental council is being renewed. Additionally, 307 million euros (36.6 billion francs) of commitment authorizations are fully allocated to the Mahoran territory through the State's territorial intervention program (PITE), now linked to the overseas mission. Overall, 730 million euros (87.1 billion francs) in payment credits will be used to improve living conditions in overseas territories.
As the text is examined by Parliament, the minister warned against rejecting the budget. "I do not want overseas territories to pay the bill for political positions," she said. "New Caledonia needs reconstruction funds. Mayotte needs reconstruction funds. Therefore, yes, there is a major challenge to pass this budget for overseas territories to not further weaken them," she emphasized. The minister's comments highlight the importance of ensuring that the budget is approved to avoid additional strain on these regions.
France to Increase Budget for Overseas Territories by 10 Percent in 2027
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