In a press release issued following the plenary session of the Martinique Assembly, the Territorial Collectivity of Martinique (CTM) presented the key results of its 2025 administrative account. It announced a net surplus of 3.52 million euros, while noting that the fiscal year took place under particularly tight budgetary constraints, marked in particular by rising social spending, changes in state funding, and limited fiscal flexibility. The local government states that these results are in line with the financial recovery plan that has been implemented and which is set to continue in 2026.
2025 Administrative Statement: CTM Confirms the Initial Results of Its Recovery Plan and Reports a Positive Net Income Despite a Very Tight Budgetary Environment
Matinik, June 25, 2026
Meeting in plenary session, the Martinique Assembly approved the 2025 administrative budget of the Territorial Collectivity of Martinique. Against a backdrop of particularly tight budgetary constraints—marked by ongoing pressure from social spending, changes in the national framework for local finances resulting in further reductions in state grants, the effects of inflation, the reduction in the local government’s fiscal flexibility, and the impact of measures to combat the high cost of living, the CTM reaffirms its commitment to pursuing a path of responsible, transparent, and sustainable management.
Fiscal Year 2025 marks an important milestone in the recovery strategy undertaken by the Territory. The initial results of the plan to optimize revenue and expenditures reflect the commitment of all departments and the Executive Branch’s determination to gradually restore financial balance, without neglecting the essential public service missions carried out for the benefit of the people of Martinique.
More than 60 million euros in cost-cutting measures have thus already been implemented during fiscal year 2025, out of the 92 million euros planned for 2025 and 2026. A new phase of the optimization plan is currently being formalized and will be launched at the end of 2026. These efforts are based, in particular, on better control of operating expenses, more efficient management of current expenses, improved revenue collection, securing external financing, and increased mobilization of European funds.
The 2025 administrative account reflects this trajectory with a positive net result at year-end. After taking into account retained earnings from prior fiscal years and uncompleted projects, Net income came in at a surplus of +3.52 million euros.This result confirms the initial effects of the optimization plan launched by the CTM, against a budgetary backdrop marked by significant structural constraints.
This trend is occurring against a backdrop of significant pressure from social welfare expenditures. These expenditures will total 490.48 million in 2025, an increase of 24.4 million compared to 2024, driven in particular by population aging and nationwide benefit increases.
At the same time, the CTM has maintained a significant level of investment. Actual investment expenditures reached 383.33 million euros in 2025 and increased by nearly 65 million, confirming the continuation of a proactive investment policy despite budgetary constraints.
The CTM has also managed to maintain a significant level of revenue in an environment marked by national tax reforms, growing dependence on VAT shares, state grants, and European funding, as well as by the effects of measures to combat the high cost of living on certain local tax revenues.
« We have chosen accountability and transparency. The situation remains challenging, but our efforts are yielding results. More than 60 million euros in cost savings were achieved in 2025. The administrative account shows a positive net closing balance of 3.52 million euros. This demonstrates that our approach is the right one: controlling our expenditures, better mobilizing our revenues, securing our funding, and preserving our capacity to act on behalf of the people of Martinique. »,
said Serge LETCHIMY, President of the Executive Council of Martinique.
In 2026, the Collectivité will continue to implement its optimization plan, focusing on several key areas: strengthening revenue collection, diversifying resources, securing compensation owed by the State for social services, optimizing assets and operating resources, and continuing to mobilize European and external funding to support development.
