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    Home » Governance and Empowerment: The Essential Need for Transparency Regarding Martinique’s Budgetary Needs. An op-ed by Gdc
    Gdc's Perspective

    Governance and Empowerment: The Essential Need for Transparency Regarding Martinique’s Budgetary Needs. An op-ed by Gdc

    June 17, 2025Updated:June 19, 2025No Comments
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    Before Any Reform: Clarity on Resources

    The issue of Martinique’s emancipation, change in status, or assumption of political responsibility is ever-present in public debate; it is essential to remember that any serious discussion of the territory’s governance must be based on an accurate and transparent understanding of current budgetary needs. Before any institutional reform can take place, a clear understanding of the figures and financial flows is essential for an informed debate.

    A substantial annual budget, necessary to meet the region's needs

    For the 2023–2024 fiscal year, the total public budgets allocated to Martinique are estimated at 2.38 billion euros per year. This amount, which is the sum of the budgets of the major local governments, key operators, and state grants, illustrates the scale of the resources required for Martinique’s operation and development.

    The breakdown of these budgets by sector highlights the diversity of needs: education, health, transportation, economic development, housing, the environment, and more. Each budget line item reflects a concrete reality for the local population and stakeholders.

    Multi-Year Supplements: Structural Support

    In addition to annual budgets, multi-year programs further bolster public efforts. The Chlordecone IV Plan, the Convergence and Transformation Contracts, and one-time grants provide more than 119 million euros in additional funding each year. Thus, the cumulative total of public funds mobilized amounts to nearly 2.5 billion euros, or approximately 6,922 euros per capita per year.

    Budgetary transparency, the cornerstone of democratic debate

    Why is this transparency essential? Because these figures are not abstract: they represent the reality of the resources needed to ensure health care, education, mobility, social support, and regional development. They are the foundation upon which social cohesion and the ability to build the future rest.

    Emancipation cannot be conceived without addressing the issue of resources

    Opening a debate on Martinique’s governance—whether it involves autonomy, independence, or other models—requires a rigorous assessment of these budgetary realities. Today, virtually all of these resources come from transfers from the French government, European funds, local taxes, and social security contributions. More than 80% of these funds come from national and European solidarity.

    What are the alternatives for an independent Martinique?

    If Martinique were to become independent, it would have to collect all necessary taxes and levies on its own, bear the full burden of social security contributions, and seek new external partners. However, the local economic structure, the limited tax base, and demographic factors make this a particularly difficult challenge to overcome. Current tax revenues would barely cover 40% of its needs, leaving a deficit of more than 1.5 billion euros to be covered each year.

    The Consequences of a Loss of Income

    The absence of current transfers would entail either a massive tax increase, a drastic reduction in public services, or an uncertain reliance on debt or international aid. The standard of living and the quality of services would be directly affected, raising questions about the sustainability of such a plan and the social unrest that would result.

    For a collective, clear-headed, and responsible decision

    Governance in Martinique cannot be reduced to an arbitrary institutional choice. It requires a shared understanding of the necessary and available resources, as well as complete transparency regarding their source and use. Only under these conditions can future decisions be made collectively, with clarity and accountability, to build a controlled and ambitious future for Martinique.

    Ultimately, any discussion of emancipation or a change in status must be based on an honest and comprehensive budgetary analysis. This is an essential prerequisite for a truly informed democratic debate. We must also ask ourselves—and do so sincerely—whether it is possible to instill in the people this desire for emancipation and the sacrifices that go along with it…

    Gérard Dorwling-Carter

    P.S.: Some may feel that these figures are not precise enough, but this is the data available to us, and it is sufficient to form the basis for a clear-eyed assessment of our financial and budgetary realities.

    ADDENDUM.                                                                                                                                                                                        It is After posting this «Perspective,» I became aware of the open letter sent by Karl Paolo to Representative Mathilde PANOT, from which I have excerpted the following points to supplement the argument presented above, namely, the absolute necessity for every citizen of the overseas territories—including us Martinicans—to thoroughly examine the issue of budgetary funding for any proposal regarding changes to our statusarea.
    « 

    Martinique has the largest number of civil servants, with 105 civil servants per 1,000 residents, compared with an average of 73 in mainland France

    • France’s commitment takes two main forms: budgetary spending—that is, the money France spends on Martinique—and tax revenue foregone—that is, the revenue it chooses not to collect.

    • Budget expenditures total 6.8 billion euros, including 2.8 billion euros for the federal budget, 3 billion euros for Social Security, and 1 billion euros in grants to fund local governments

    • Tax expenditures total €700 million, or €2,000 per capita (2023-M-047-

    On top of that, there’s an additional 500 million euros for the electricity price equalization program, which allows residents of Martinique to pay the same price as in France!!!

    • A total commitment of 21,400€ per capita—almost as much as the GDP!

    • However, the government collects only 2.4 billion euros in revenue, with 1.7 billion euros coming from social security contributions and 700 million euros from national taxes—VAT, income tax, corporate income tax, etc. Local taxes are collected directly by local governments.

    This amounts to a deficit of 4.4 billion euros (Studies and Statistics | impots.gouv.fr | Martinique General Social Security Fund | Court of Auditors)

    • European aid totals approximately €286 million, including €164 million from the ERDF, ESF+, etc., and €122 million from the POSEI (Plenary Session of the Martinique Assembly – April 5, 2024)

    • The France Relance Plan: €260 million

    • As far as Social Security is concerned, there is no distinction between the departments in mainland France and ourssince reimbursements depend on the procedures performed. However, people in Martinique claim more reimbursements than those in Corsica: €2.3 billion in healthcare costs compared to €1.4 billion for an equivalent population (CPAM of Southern Corsica | Health Insurance | About Us? | CPAM of Haute-Corse | Health Insurance | About Us?)

    • For grants to municipalities, the scale is based on population. For local authorities, the CTM received 632 million euros this year, compared with 320 million euros for the Collectivité de Corse

    • Government spending averages €8,200 per capita in the overseas territories, compared with €7,100 in mainland France

    • This expenditure amounts to only €5,800 for French Polynesia and New Caledonia, and since greater autonomy means lower government spending!

    • Corsica receives 187 million euros per year under the territorial continuity program. This program was negotiated by the entire political establishment in 1976. However, it has not been reassessed since 2009!

    The gap between France and mainland France often reflects the level of infrastructure development. However, this development is the result of a century-long process in France.

    Local authorities are not helping Martinique emerge from the crisis

    • Of the CTM’s €1,498 million budget, operating expenses total €999 million, of which €262 million is for salaries

    • Conclusion of the Regional Court of Auditors’ 2020 report: The CTM’s overall financial situation is, in fact, paradoxical: while it has ample cash flow, the amount of its investments is decreasing, its debt is increasing, and its ability to pay down debt is deteriorating

    • In August 2024, the number of «ghost employees» at the CTM was estimated at 200 (“Some 200 employees paid to do nothing,” according to Serge LETCHIMY, chairman of the CTM’s executive board)

    • The annual cost of the “octroi de mer” tax is €949 per capita in Martinique in 2022, compared to €635 in Réunion (“The ‘octroi de mer’: A Tax at a Crossroads” | Court of Auditors)

    • Only 5.6% of the port tax is invested in the Regional Fund for Economic Development and Employment (FRDE), compared to 22.8% in French Guiana. Yet the law requires it to do so.

    • Municipal taxes amount to €1,275 per resident, compared with an average of €667 in French municipalities with more than 20,000 residents

    • Martinique is the overseas territory with the highest per-capita operating expenses at €1,645, followed by Guadeloupe at €1,584, Réunion at €1,381, and French Guiana at €1,285.

    • Municipalities’ actions are constrained by high levels of debt – €342 million in 2022, and salaries: 67% of this amount is allocated to personnel costs, compared to 55% in mainland France (Observatory of Municipalities in Martinique 2023 | AFD – Agence Française de Développement)

    • Municipalities’ external expenditures—and thus infrastructure spending—account for 13% of the budget in 2022, compared with 25% in mainland France (Observatory of Municipalities in Martinique 2023 | AFD – Agence Française de Développement)

    Local politicians are unable to provide solutions or allocate resources for Martinique's development

     

     

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