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POLITICS: The heated debate on the 2025 budget guidelines | FAXINFO

March 16, 2025

POLITICS: The heated debate on the 2025 budget guidelines | FAXINFO
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When for his territorial council (CT) last Wednesday, the debate on the budgetary guidelines 2025 of the Collectivity of Saint-Martin highlighted a worrying financial situation, requiring strategic adjustments.

 

President Louis Mussington stressed the importance of rigor and transparency in the management of public funds: "This time of reflection is a crucial moment in the overall budget exercise."

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The report of the Territorial Chamber of Accounts (CTC) point four failures major: an incomplete inventory of the Community's assets, poor accounting of work carried out under management, the absence of provisions for disputes and suspense accounts to be regularized. The Community has already initiated reforms to address these shortcomings, including an audit of depreciation and better asset management.

 

One of the critical points during the CT concerns the financial trajectoryThe self-financing capacity of the Community has decreased, going from positive net savings in 2023 to a negative net savings of 3,6 million euros in 2024. To rectify the situation, priority is given to the reduction of expenses of operation and to theinvestment optimizationA tightened multi-year investment plan (PPI) for 2025-2027 will allow resources to be concentrated on priority projects.

 

The personnel expenses, which have been on the rise in recent years, are not the only ones responsible for the increase in costs. The Community has a recruitment policy, particularly for specialized managers to ensure better monitoring of major projects and improve public services. However, a workforce control policy will be applied from 2025, with a reduction in the payroll of 2,8 million euros.

 

Regarding revenue, the Community plans a retention the level of the main sources of financing, in particular the General Turnover Tax (TGCA), which brought in 48,2 million euros in 2024. Despite the drop in savings, the Community asserts its ability to finance its investments without resorting massively to loans.

 

Finally, the debate was marked by opposition criticism, which denounces a "spectacular deterioration" in finances. Former president Daniel Gibbs recalled that "the Community was in surplus in 2022" and that the current situation is worrying. For his part, Mussington acknowledges errors but insists on the need to adapt management to current challenges. _Vx

 

 

The CTC estimates, in its latest report (2024), that the COM can only commit €20M in the Investment section.
It will follow these recommendations for a significant reduction in investments (nevertheless, estimate for 2025: €68,1 million)

https://faxinfo.fr/en/politique-le-debat-houleux-des-orientations-budgetaires-2025/

Source: https://www.sxm-talks.com/local-news/politics-the-heated-debate-on-the-2025-budget-guidelines-faxinfo/

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