admin's picture

Cites projected tax revenue surplus

By Bernadette H. Carreon HAGÅTÑA, Guam (Marianas Business Journal, July 4, 2011) – President Johnson Toribiong requested Palau Congress to authorize a supplemental budget of nearly US$1.8 million for fiscal 2011 to cover the cost of the national government's general operations.

The president made the request after identifying a revenue surplus in the current fiscal year as expected from high tax collection rate.

The Ministry of Finance disclosed that as of April, various taxes collected by the government have reached 68 percent of the projected total collection by the end of fiscal 2011.

The government, according to the Ministry of Finance, has already collected more than US$25.3 million as of April. Officials are expecting to exceed the US$34.7 million projected revenue level within five months before the end fiscal year.

The supplemental budget request seeks to fund several activities of the executive branch including US$180,000 for Bureau of School Administration; US$20,000 for food service program; US$200,000 for Bureau of Aviation; US$250,000 for water and sewer operations; US$100,000 for the National Capitol electricity and maintenance; US$156,000 for Ministry of Health Administration and US$600,000 for medical referrals and additional contribution to the Palau health insurance program.

The Office of the President is also requesting additional US$100,000. Toribiong said even with supplemental allocations, this year's budget would still be less than the fiscal 2006 level.

Besides increased tax collections, Toribiong also identified US$500,000 earned interest from the Micronesian Conservation Trust Fund and US$436,000 from the proceeds of the Guam land sale that he said can be diverted to the general fund.

The rest of the cash, he said, can be sourced from the management of the Western purse seine vessel fishery from the National Fisheries Authority of Papua New Guinea.

The supplemental budget request also proposes to authorize but not to appropriate US$230,000 to the Palau National Olympics Committee until sources has been identified for the funding.

Congress is on recess and will reconvene in July for regular session.

Rate this article: 
No votes yet

Add new comment