1

SUMMARY

FINANCIAL SITUATION OF LOCAL

PUBLIC BODIES IN NEW CALEDONIA

2024

Examined and approved by the territorial audit office on September 26, 2025

2/11

Warning

This summary is intended to facilitate the reading and use of the report of the territorial audit

office. Only the full report binds the territorial audit office. The answers, if expressed, of the

administrations, organizations and local bodies concerned are included after the full report.

The public reports of the territorial audit office are available online on its website:

www.ccomptes.fr/fr/ctc-nouvelle-caledonie.

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TABLE OF CONTENTS

1

A YEAR 2024 MARKED BY CRISIS

............................................................................

4

1.1

Economic activity declined despite local measures taken

................................................

4

1.2

The State provided a massive support

..............................................................................

5

2

A SIGNIFICANT DETERIORATION IN THE FINANCIAL SITUATION OF THE

LOCAL PUBLIC SECTOR

.............................................................................................

6

2.1

Public expenditure is in decline

........................................................................................

6

2.2

A generally favorable cash position thanks to cash advances

..........................................

7

2.3

Public institutions in the cultural and health sectors are facing difficulties

.....................

8

3

A 12 % REDUCTION IN COMPULSORY LEVIES

...................................................

9

3.1

Tax revenues and social contributions are in decline

.......................................................

9

3.2

Social protection accounts are deteriorating

.....................................................................

9

4

BUDGET EXECUTION FAR FROM INITIAL FORECASTS, A CRISIS WHOSE

EFFECTS ARE STILL FELT IN 2025

.........................................................................

10

4/11

The territorial audit office has analyzed the financial situation of New Caledonia, the provinces

and cities for the fiscal year 2024, a year marked by several crisis.

This report provides

decision-makers and citizens with an overall perspective on the financial situation of local

public bodies, heavily impacted by the consequences of these crises.

1

A YEAR 2024 MARKED BY CRISIS

1.1

Economic activity declined despite local measures taken

In 2024, New Caledonia experienced two crises, one specific to the nickel sector with the

announcement of the shutdown of the North plant on February 12

th

and its closure on August

31

th

, and the other related to the consequences of the riots that broke out on May 13

th

.

According to the latest available estimates, gross domestic product fell by 15 % to reach

916 billion CFP francs, a level close to that of 2015 and 2016. Despite a decline in inflation to

1 % in 2024, household consumption is down. While the annual variation in average energy

prices has stabilized, that of average food prices remains dynamic (+ 3.3 %). The issue of the

high cost of living remains therefore relevant throughout the year, all the more so as the

destruction has led to a significant reduction in the number of private sector employees. The

number of unemployed beneficiaries in 2024 more than doubled compared to 2023 (+ 124 %).

New partial or total unemployment schemes have been created to cope with the consequences

of the riots.

Graph n° 1: Evolution of gross domestic product

Source: ISEE

–

IEOM, rapid accounts of New Caledonia, 2023

Mining production recorded a significant decline with only 9.2 million tons of wet ore extracted,

compared to more than 19 million in 2023. Mineral exports collapsed, reaching only 514,138

tons, a 93 % decrease compared to 2023. Metallurgical production also plummeted, with

53,327 tons of nickel content, compared to 103,652 tons in 2023, a 49 % decrease, after an

upward trend since 2021. Finally, tourism has declined to a particularly low level. Only 59,399

international passengers transited through La Tontouta International Airport in 2024, compared

to 125,097 passengers in 2023, and the number of cruise passengers decreased by 44 %

between 2023 and 2024.

Exceptional measures have been put in place to cope with these crises. A specific partial

unemployment allowance has been introduced to compensate for the loss of income of

-20

-15

-10

-5

0

5

850

900

950

1 000

1 050

1 100

1 150

2014

2015r

2016

2017

2018e

2019e

2020e

2021e

2022e

2023e 2024ec

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companies directly or indirectly affected by the nickel sector crisis until December 31, 2024.

The Northern province has also set up an emergency aid scheme and exceptional support

measures to maintain activity and employment within companies, as well as an immediate and

exceptional emergency aid scheme. The Southern province has deployed an accompanying

and support plan for the redeployment and employment of employees in the nickel sector or in

the building and public works sector who have lost their jobs or are affected by a dismissal

procedure, or self-employed workers operating in these sectors and whose activity has

decreased by more than 35 %.

To cope with the social and economic consequences of the riots, a specific partial

unemployment allowance, funded equally by the State and the government, was created to

compensate for loss of income. A total unemployment allowance was also introduced for

employees who were involuntarily unemployed. Companies and self-employed workers were

able to benefit from a deferral of payment of their social contributions and a deferral of tax

deadlines without penalties. Exceptional measures in terms of urban planning and aid for the

reconstruction of destroyed property were introduced. The insurance committee undertook to

facilitate the declaration of losses. For individuals, a monthly aid for the payment of electricity

bills for a period of four consecutive months was introduced under certain conditions, and

disconnections for unpaid bills were suspended. Finally, a safeguard and reconstruction plan

was drawn up by the 17

th

government.

The Northern province amended in June the deliberation taken in March for the nickel sector

crisis and adopted exceptional measures regarding the amendment of administrative rules and

deadlines during the period between May 13, 2024, and August 31, 2024. The Loyalty Islands

province set up an emergency aid to support companies whose economic activity was affected.

The Southern province relaunched the emergency plan to maintain business activity and

employment set up in 2023 and adopted various targeted measures, such as an incentive for

the reinstallation of medical or dental liberal practices, the restoration of housing rendered

uninhabitable, and financial aid for the recruitment of staff to preserve the premises of

companies threatened by riots. It also restricted the conditions for granting school scholarships

and introduced exceptional measures in terms of urban planning to facilitate reconstruction.

1.2

The State provided a massive support

The support of the State proved essential both for businesses and to ensure the cash flow of

local authorities, the CAFAT, ENERCAL, and the local pension fund. According to the local

public finance department, the State's expenditure in New Caledonia reached, due to the crisis,

197.6 billion CFP francs in 2024, 14 % more than the forecast in the initial finance law, notably

due to a doubling of expenditure on the "Security" mission and subsidies, loans, and repayable

advances granted to local authorities. Financial aid to nickel sector companies amounted to

45.4 billion CFP francs (excluding the conversion of State loans to Société Le Nickel into quasi-

equity) and 8 billion CFP francs in subsidies (direct aid from the State to companies or local

authorities) as well as 46.6 billion CFP francs in repayable advances corresponding to New

Caledonia's share of the financing of crisis devices and structural deficits, were paid in 2024.

On the contrary, the cost of national tax exemption decreased between 2024 and 2023

(9.2 billion CFP francs). In total, in 2024, the weight of the State transfers (260.2 billion CFP

francs) should amount to 28 % of gross domestic product.

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Graph n° 2: Evolution of the weight of financial transfers from the State and the budgetary

cost of tax exemption in relation to the gross domestic product of New Caledonia

Source: ISEE

–

Local Public Finance Department (2024 provisional data)

2

A

SIGNIFICANT

DETERIORATION

IN

THE

FINANCIAL

SITUATION OF THE LOCAL PUBLIC SECTOR

2.1

Public expenditure is in decline

Local public expenditure decreased by nearly 10 % between 2023 and 2024 to reach a total

of 218.4 billion CFP francs, returning to its 2019 level. This decrease in local public expenditure

is not, however, linked to a decrease in real operating expenses, which increased by nearly

11 billion between 2023 and 2024 (+ 6.4 %) to reach nearly 181 billion CFP francs in 2024, but

to a 48 % decrease in real investment expenditure between 2023 and 2024 to reach nearly

38 billion CFP francs in 2024, a historically low level.

Local authorities in New Caledonia are facing a risk of revenue-expenditure gap between the

decrease in real operating income (- 5 %) and the increase in real operating expenses

(+

6.4

%). Gross savings fell to 10.4 billion CFP francs in 2024 compared to 31.3 billion CFP

francs in 2023. Real operating income decreased due to the decline in tax revenue (- 17 %),

grants, and other revenue. Real operating expenses increased, notably due to exceptional

expenses related to the riots of May 2024. New Caledonia saw its real operating expenses

increase by 45 %, while those of the provinces, municipalities, and syndicates decreased.

Personnel expenses remain the main expenditure item, representing nearly 41 % of real

operating expenses. Aid to individuals and operating subsidies also decreased, reflecting a

contraction in expenditure.

17%

17%

17%

16%

18%

18%

16%

17%

28%

15%

17%

19%

21%

23%

25%

27%

29%

31%

2016

2017

2018

2019

2020

2021

2022

2023

2024

7/11

Graph n° 3: Evolution of the real operating income and expenses of New Caledonia (main

budget), provinces, municipalities, and syndicates

Source: DGFiP

–

RFPL BP (end of April 2025 for 2024 data)

–

territorial chamber of accounts

New Caledonia, the provinces, the municipalities, and the syndicates recorded in 2024 a

financing need of 14.24 billion CFP francs, down 29 % compared to 2023 due to the decrease

in real investment expenditure. The outstanding debt of local authorities in New Caledonia

increased by 23 billion CFP francs in 2024, mainly due to new loans contracted by New

Caledonia to cope with the crisis related to the riots. As of December 31

st

, 2024, the total debt

of the authorities amounts to 197 billion CFP francs, representing 21.5 % of New Caledonia's

gross domestic product, with New Caledonia bearing 51 % of this debt.

2.2

A generally favorable cash position thanks to cash advances

If the Treasury account of the authorities shows an amount of 56 billion CFP francs at the end

of the 2024 fiscal year, it is thanks to a significant volume of cash advances, amounting to

23.3 billion CFP francs of which New Caledonia benefits from the State, and cash lines for

municipalities (2.7 billion CFP francs) and syndicates (0.15 billion CFP francs), for a total of

26.1 billion CFP francs in 2024. The chamber recalls that cash lines are intended to finance

intra-annual needs and must be repaid or consolidated into loans at the end of the fiscal year.

The working capital requirement of local authorities decreased by 57 % between 2023 and

2024, with a notable decrease for New Caledonia, moving from a requirement of 1.2 billion

CFP francs to a surplus of 8.4 billion CFP francs due to significant expenses to be regularized

and a credit balance of the linked account.

The outstanding supplier debts of the local public sector was multiplied by 3.4 between 2023

and 2024 to reach nearly 19 billion CFP francs at the close of the 2024 fiscal year against

5.5 billion CFP francs at the close of the 2023 fiscal year, indicating an increase in payment

delays.

185

178

206

199

186

201

191

162

165

179

171

161

170

150

160

170

180

190

210

2018

2019

2020

2021

2022

2023

2024

Actual operating income

Actual operating expenses

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Graph n° 4: Outstanding supplier debts in days of general expenses net of reimbursement

of expenses of New Caledonia, provinces, municipalities, and syndicates

Source: territorial chamber of accounts based on DGFiP data as of April 30, 2025 (outstanding supplier debts correspond to the

balance of account 40)

Customer receivables decreased, but doubtful receivables increased. Municipalities faced

cash flow tensions due to delays in the payment of subsidies or grants. Linked accounts to

annex budgets are virtually settled, thus limiting their impact on the main budgets of

municipalities.

2.3

Public institutions in the cultural and health sectors are facing difficulties

Administrative public institutions of New Caledonia, excluding the COVID debt repayment

agency and excluding high schools and colleges, see their gross operating surplus increase

by 34 % between 2023 and 2024. However, the situation is more worrying for administrative

public institutions in the cultural sector, their gross operating surplus becomes negative in

2024. The health and social agency maintains its cash position thanks to specific tax

allocations. The financial situation of the local pension fund improves thanks to measures taken

in 2023 and 2024. The gross operating surplus of the autonomous port progresses, while

OCEF faces a decline in its turnover. Public health institutions show a contraction in their

activity, with a negative gross operating margin for the North hospital center. Municipal social

action centers maintain a favorable cash position thanks to rigorous management of expenses.

School funds, on the other hand, see their cash position decrease significantly, and their linked

account indicates significant support from municipal budgets.

89

88

100

91

73

286

-

200

400

600

800

1 000

1 200

2019

2020

2021

2022

2023

2024

Average turnover rate

New Caledonia

Provinces

Municipalities

Syndicates

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3

A 12 % REDUCTION IN COMPULSORY LEVIES

3.1

Tax revenues and social contributions are in decline

Net tax revenues collected by New Caledonia, CAFAT, and municipalities decreased by

14.2 % between 2023 and 2024 and amounted to 184.9 billion CFP francs in 2024 compared

to 215.5 billion CFP francs in 2023, a loss of more than 30 billion CFP francs. Social

contributions collected decreased by 8.6 % between 2023 and 2024. They reached

116.7 billion CFP francs in 2024, a loss of 11.0 billion CFP francs compared to the amount

collected in 2023 (127.7 billion CFP francs). The rate of compulsory levies, corresponding to

the ratio between the product of taxation and social contributions on the one hand, and gross

domestic product on the other hand, amounts to 32.9 % in 2024, subject to future corrections

of the gross domestic product of the 2024 fiscal year.

Graph n° 5: Evolution of tax revenues and contributions

Source: territorial chamber of accounts based on the management accounts of New Caledonia, the main budgets of

municipalities, and the local pension fund, the accounts of CAFAT, and ISEE data relating to GDP

The ratio between net tax revenues and State transfers decreased in 2024 compared to 2023,

due to the decrease in tax revenues and the increase in transfers. This ratio stands at 0.94.

Taxation reversed to the provinces, municipalities, and public institutions of New Caledonia

through redistribution and reversal budgets decreased by 19 % between 2023 and 2024 to

reach 135.5 billion CFP francs. Taxation reversed to New Caledonia decreased by 31 % to

reach 23.7 billion CFP francs.

3.2

Social protection accounts are deteriorating

The situation of social health accounts further deteriorated in 2024, while the level of public

contributions in the total revenue of the organization reached more than 36 billion CFP francs,

a historically high level representing more than 20 % of total revenue. All social regimes

0

50

100

150

200

250

300

350

2020

2021

2022

2023

2024

Social contributions

collected by CAFAT and CLR

(fiscal revenue collected by

CAFAT is taken into account

in the net tax revenue)

Net tax revenue

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managed by CAFAT are in deficit in 2024, except for the family benefits regime. The reforms

already put in place have not made it possible to achieve financial balance, new reforms must

be undertaken. The measures adopted in August 2024 relating to the local pension fund have

enabled the public institution to achieve a slight surplus at the end of 2024, amounting to

0.44 billion CFP francs.

Graph n° 6: Evolution of the result of social regimes managed by CAFAT

Source: territorial chamber of accounts based on CAFAT activity reports

4

BUDGET EXECUTION FAR FROM INITIAL FORECASTS, A

CRISIS WHOSE EFFECTS ARE STILL FELT IN 2025

The execution of the New Caledonia's own budget was significantly modified during the 2024

fiscal year. New Caledonia had to pay support subsidies to various organizations, mainly

CAFAT, which led to a 126 % increase in real operating expenses initially included in the

budget. The expenses incurred are nearly 78 % higher than those recorded in the initial budget.

Regarding the provinces, it is for the Southern Province that the 2024 budget execution differs

the most from previous years. The operating expenses incurred are more than 9 % lower than

the expenses planned. The 2024 budget execution of the Northern and Loyalty Islands

provinces is closer to that of previous years.

The May 2024 insurrectional crisis continues to have effects in 2025. The real investment

expenses of all public bodies, as of August 31

st

2025, are below the level reached on average

in 2022 and 2023 for the same period (- 33 %). Tax revenues reach 62 % of the tax revenues

collected on average in 2022 and 2023 at the same date, a decrease compensated by State

grants, multiplied by 1.62 during the same period.

-10

-9

-8

-7

-6

-5

-4

-3

-2

-1

1

2

3

2020

2021

2022

2023

2024

Health and maternity

Pensions

Family benefits

Family solidarity fund

Unemployment

benefit scheme

Health at work and

occupational diseases