15/01/2026
In 2024, the financial situation of public institutions and local authorities in New Caledonia significantly deteriorates. New Caledonia has experienced two crises: one specific to the nickel sector, and the other related to the consequences of the riots that began on May 13, 2024, negatively impacting the economy. Tax revenues decreased by 14.2 % and social contributions by 8.6 %.
A deterioration in the financial situation of the local public sector despite State support
Despite the measures taken locally and the massive support from the State, with exceptional transfers and aid reaching 28 % of the territory's gross domestic product, local public expenditure decreased by nearly 10 %, or - 24 billion CFP francs, between 2023 and 2024. This is due to a 48 % decrease in real investment expenditures between 2023 and 2024, a reduction of 35 billion CFP francs in one year, which hampers the future development of the territory.
Operating expenses increased by nearly 11 billion CFP francs between 2023 and 2024, corresponding to a 6.4 % increase. The debt stock of local authorities increased by 13 % between 2023 and 2024, a rise of 23 billion CFP francs, primarily driven by New Caledonia.
A 12 % decrease in tax and social revenues between 2023 and 2024
Net tax revenues collected by New Caledonia, the CAFAT, and the municipalities decreased by 14.2 % between 2023 and 2024, amounting to 184.9 billion CFP francs in 2024. Social contributions collected by the CAFAT and the CLR decreased by 8.6 % between 2023 and 2024, reaching 116.7 billion CFP francs in 2024. The 2024 result of the CAFAT remains a deficit, as it has been throughout the 2020-2024 period, primarily due to the increase in social benefits paid.
Despite the 12 % decrease in tax and social revenues between 2023 and 2024, the drop in gross domestic product leads to an increase in tax and social pressure rates. Subject to future corrections of the 2024 gross domestic product, the rate of compulsory levies stands at 32.9 % in 2024 in New Caledonia.
A crisis whose effects are still felt in 2025
The budget ex*****on of New Caledonia and the provinces was significantly modified during the 2024 fiscal year. New Caledonia, in particular, had to provide subsidies to various organizations, leading to a 126 % increase in the real operating expenditures initially budgeted.
The May 2024 insurrectional crisis continues to have effects in 2025. The real investment expenditures of all local authorities, as of August 31, 2025, are a third lower than the average level reached in 2022 and 2023 for the same period. Fiscal revenues have also not recovered, as of August 31, 2025, to the level reached on average on August 31, 2022 and 2023, with this decrease partly offset by State grants.
👉https://www.ccomptes.fr/fr/publications/la-situation-des-finances-publiques-locales-de-la-nouvelle-caledonie-en-2024
