The national budget process have so far been overlooked and made worse by the health of the global economy and the unfulfilled promises of projections and assumptions of better and greater revenues,” the statement said.
According to a statement from the panel the budget has been reduced to $51.7 million and that there was no need to hold public hearings.
“The Senate committee was to hold selective hearings but information gathered were enough to justify the total figure of $51.7 million as passed in the Senate. Further, the committee is aware that the numbers offered by the Executive branch and the House of Delegates differed by a substantial amount. It would have been difficult to hold hearings when we know that we were going to reduce the total budget amount,” the statement noted.
“We could have just gone along with uncertain projections but then we would be risking the
Republic and the people for even greater deficits in the near future.That wouldn’t be right. At the least, and again, If the House of Delegates reject the Senate version, a much required conference should take place to iron out ‘differences’. We need to agree on one set of numbers to work with for the next fiscal year 2011,” it said.
A cut of an average 10 percent was made by the Senate in certain agencies. It also did not take into account the money it should be getting from the Compact of Free Association Trust Fund which is still under review.
Earlier Sen.Mark Rudimch, chair of the Senate committee on Ways and Means said the body will come up with a realistic version of the FY2011 budget.
He said that the House of Delegates version of the budget projected higher revenue collection which is incontrary to the June 30 quarterly financial report which showed that the government has fallen short of its target collection.
The House version of the Committee on Ways and Means in its report stated that based on its analysis of financial information, local revenues can be projected at $37 million and is convinced that FY2011 is a lot better than 2010.
Rudimch however said the 3rd quarter report says otherwise compared to the “optimistic” version of the HOD.
The House of Delegates is expected to reject the Senate version.
The budget needs to be submitted to the president by Sept. 15 as under the law he has 15 days to review the budget.
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