Tahiti's 2027 budget relies on special funds

Tahiti's government plans to use special revenues in 2027 to fund priorities like the Pacific Games, social protection, and air transport. These funds include one billion francs from the Cost-of-Living Fund, two billion from the Investment and Debt Guarantee Fund, and expected dividends from the Autonomous Port.

Budget increase comes from non-tax sources

Operating revenues are expected to rise by 5.1 percent, reaching 161.8 billion francs. However, this increase will not come from higher taxes, which are estimated at 130.9 billion, 820 million less than the 2026 budget. Instead, the government will rely on an additional 8 billion in non-tax revenues.

Special funds target cost of living and development

The government plans to use one billion francs from the Fund for the Fight Against the Cost of Living and the Development of Competition, created in 2025. Two billion more will come from the Investment and Debt Guarantee Fund, and the Autonomous Port is expected to pay exceptional dividends, though the amount is not specified.

Budget needs include major expenses

The budget includes a larger subsidy for the Pacific Games, rising from 1.5 to 3.5 billion francs. The Universal Social Protection Fund will require 5.5 billion, and the extension of a tax moratorium on hydrocarbons will cost 2.5 billion. Additional funds are needed for the Samu at the CHPF and the delegated air service.

Air service costs will increase significantly

The cost of the delegated air service is expected to rise from 1.3 to 2.4 billion francs in a full year. The general budget will provide over one billion francs for this, compared to 350 million so far. Some of these expenses will become ongoing rather than temporary.

Government to cut operations and borrow more

To cover the budget gap, the government plans to reduce current operations by 10 percent, saving two billion francs. It will also borrow 12 billion francs in 2027, extending the debt repayment period to seven years. This is above the government's target but still below the alert threshold of ten years.

Budget debate to finalize details

The budget orientation debate on October 26 will allow elected officials to review the proposed financial choices. The initial budget will then outline specific amounts and allocate credits. The ROB highlights a year of balancing commitments, controlling regular expenses, and using more reserves.