New Caledonia's Territorial Chamber of Accounts has warned of a critical situation with the public finances as deficits have ballooned.
In a report commissioned by the French High Commission, the Chamber urged the creation of new revenue streams to help balance the books.
The Chamber found that the overall deficit of the social accounts grew five-fold between 2017 and 2020, with social welfare protection schemes being close to defaulting.
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It noted that the local social welfare fund, known as Cafat, has a structural deficit of $US170m, with the Covid-19 pandemic accounting for about $US45m.
The report says with reserves depleted at the onset of the pandemic, New Caledonia benefited in 2020 from grants from France and a $US257m loan from the French Development Agency.
To help balance the books, it adds, almost $US100m in new revenue needs be raised from this year.
