Réunion Region has adopted its 2026 preliminary budget: €1.321 billion in payment credits, a 22.7% rise in capital spending, and a first: a 'green budget' integrating climate and biodiversity indicators. Against a tight economic backdrop, the regional authority is betting on ecological transition as a driver of development.
An Investment-Oriented Budget
Of the main budget, 53% of credits are allocated to investment versus 47% for operations. The gross savings rate stands at 21%, with debt repayment capacity estimated at nine years — a self-imposed ceiling. Capital expenditure jumps 22.7%, driven by secondary schools, mobility infrastructure and the New Coastal Road (NRL).
Ecological Transition as a Priority
Ecological and sustainable transition receives €321 million, up 27.8% — the fastest-growing item. For the first time, Réunion Region publishes a 'climate budget' and a 'biodiversity budget,' two transparency tools that will track the environmental footprint of each euro spent. Among the flagship projects: a new undersea cable worth approximately €90 million to strengthen the island's digital connectivity.
Human Development and Business Support
Human and social development receives over €278 million (+7.8%), while economic development is allocated €100 million (+2.2%). The regional authority claims €15 million disbursed through its Regional Expertise Fund and 10,500 businesses supported since the current mandate began.
Debates and Friction Points
The budget passed with a majority vote and two abstentions. The opposition criticised insufficient business support and delays in school construction. A motion called for a tender process for a public-private fuel import and storage company, highlighting persistent energy supply tensions. The car registration tax rises from €57 to €60 per horsepower, reaching its legal cap.
Why It Matters
With a 22.7% jump in capital spending and a first-ever green budget, Réunion Region is sending a clear signal: ecological transition is not a cost but a lever for growth and attractiveness. In an island where food costs 37% more than in mainland France and unemployment exceeds 19%, this budgetary commitment will be judged on its concrete results.