PRESS RELEASE

24 May 2022

Public report

CENTRAL GOVERNMENT FUNDING IN OVERSEAS

TERRITORIES

The repeated social tensions - linked in particular to employment, inequality and insecurity

- that the overseas territories experienced between 2006 and 2009, then again in 2017 in

French Guiana and 2018 in Mayotte and Reunion, underline the continued, even worsening,

economic and social vulnerabilities of these territories.Central government tried to respond

to each of these crises by implementing a number of emergency plans, and by significantly

increasing its budgetary effort.In 2021, the overall budget (budget expenditures and tax

expenditures) earmarked to support overseas territories public policies amounted to €27.3

billion, excluding social expenditures, representing 11% more than in 2020.Despite this

increased commitment from central government to the overseas territories, the Court

observes

an

underperformance

of

the

expenditure

approved.

In

addition,

the

Interdepartmental Overseas Policy Paper (DPT)

–describing the state’s interdepartmental

action overseas

–

proves to be comprehensive, but ultimately not useful for informing

Parliament about central government’s strategy and the extent to which actions have

succeeded. In the report published today, the Court makes ten recommendations that

would, among other things, improve the information given to parliamentarians and the

public.

Increased central government investment, but mixed results

In particular, France’s law on real equality overseas of 28 February 2017 set a target for the

convergence of the overseas territories and continental France and, for the last five years,

central government has financed a significant portion of public investments overseas. In 2021,

this effort was reflected in a significant amount of budget spending passed by Parliament (€20.9

billion), but also in particularly high tax expenditure (€6.3 billion)

- making overall spending up

11% compared to 2020. Tax expenditure, the effectiveness and efficiency of which in

benefitting overseas territories have never been clearly demonstrated, represents a significant

loss of earnings for the central government budget, even though they are never seriously

assessed. Despite the significant investments made by central government, obvious inequalities

persist, exacerbated in French Guiana and Mayotte by sharp population growth, explaining the

very significant under-consumption of funding. While it is necessary to make the appropriation

of funds dedicated to overseas territories more efficient with regard to the capacities of the