Supplementary budget: keeping expenditure under control – a test of the figures
Following the harsh criticism from the Regional Audit Office, the majority had announced in March 2025 that it intended to “adopt a rigorous approach”, cut spending and reduce reliance on external services. However, the adoption of the supplementary budget at the territorial council meeting on 10 September shows that several operating expenditure items have actually increased.
Last March, elected representatives approved an initial budget of €276.3 million (€170.9 million for current expenditure and €105.4 million for capital expenditure). The supplementary budget (SB) incorporates the final result for 2025, namely an operating surplus of €35.94 million, of which €17 million has been allocated to investment and €18.93 million carried forward to the operating budget. It also takes into account expenditure already committed since the start of 2026 and updates the forecasts approved in March. It must be noted that the vast majority of this budget is dedicated to addressing outstanding issues and increases in certain costs, and does not include any new projects.
External service costs continue to rise
The Regional Audit Office had been particularly critical. Between 2021 and 2023, staff costs alone had risen from €43.1 million to €60.8 million – an increase of over 41 per cent. It concluded at the time that ‘the rise in expenditure was no longer under control’ and also highlighted the growing burden of external service providers. General
expenditure nevertheless increased by €10.05 million (totalling €37.93 million for the year). Admittedly, €2.4 million relates to expenditure committed in 2025 and carried forward, but €4 million relates to services: cleaning of public roads, maintenance of gullies and ditches, hire of rubbish bins, pest control and cleaning equipment. The Director-General of Services (DGS) attributes this increase to the sargassum collection contract, which has seen exponential growth and significant cost overruns. Added to this are €1 million for legal fees and litigation costs, and over €2.3 million in adjustments for consultancy services to support project management regarding the overhaul of temporary occupation permits (AOTs), the regularisation of roads and facilities for technical services… This development stands in stark contrast to last year’s stated objective of reducing external services. The same is true of staff costs, which have risen by €3.64 million. The budget also allocates €295,000 for new posts, €700,000 for the annual allowance supplement, €120,000 for the Inter-professional Occupational Health Centre and €217,600 for meal vouchers, amounting to an additional €1.3 million. This increase also includes €2.31 million for the regularisation of management agreements with the Guadeloupe Departmental Council. For 2026, the budget stands at €67.75 million for staff costs and related expenses.
Costly cases
Other increases are more difficult to attribute to day-to-day expenditure. Of the €9.71 million in receivables that have become irrecoverable, the net loss remains below €260,000 thanks to €8.8 million in write-backs of impairment losses and €570,040 in receivables that were ultimately recovered. However, the impact on the budget is far more severe in the case of now well-known issues: the abolition of the TCPP (tax on fuel and petroleum products) means €8 million less in revenue, €3.45 million in debt arising from the GEDC legal dispute and an additional €4.86 million to be set aside as provisions for the associated risks. As for Air Antilles, the airline’s liquidation has led to a write-down of €14.9 million on the sums committed by the Collectivité.The subsidy to the STIS (Territorial Fire and Rescue Service) amounts to €4.64 million for 2026 (€4.65 million for operating costs and €334,748 for capital expenditure).
As regards revenue, the Collectivité has allocated €214.58 million to the operating budget, of which €99.2 million comes from taxes and duties and €37.92 million from the release of provisions and write-downs, which do not constitute new revenue. Added to this is €18.9 million from the 2025 operating section surplus, bringing the total to €233.5 million. In the investment section, total expenditure for 2026 stands at €117.7 million. This section is balanced in particular thanks to the 2025 operating surplus, of which €17 million is allocated to investment.
Ultimately, the supplementary budget undoubtedly helps to restore order to the accounts and to address decisions or risks carried over from previous financial years. However, behind these adjustments, current expenditure does not yet indicate a genuine austerity programme. General expenses and the wage bill continue to rise, specifically in two areas that the Regional Audit Office had placed under scrutiny. The ‘austerity’ announced therefore remains, for the time being, difficult to discern in the figures.
The 2026 supplementary budget stands at €74.94 million, comprising €62.6 million in operating expenditure and €12.3 million in capital expenditure. The Collectivité’s overall budget for the year stands at €351.26 million.
