Finance Minister Kerai Mariur, in an interview said that the ministry forwarded the FAA.
Sen. Tommy Remengesau Jr. during the session said the FAA is imperative and questioned the timing of the supplemental budget.
‘At this time, still in the first month of 2010, no one will be drowned without the completion of the supplemental,” Remengesau said.
Mariur however said that the law is needed to be changed so that the government does not have to withdraw from the Compact Trust Fund.
The vice president said when the Year 2010 budget was drafted it was made without the Compact funding direct assistance.
President Johnson Toribiong is asking the OEK an additional sum of 3,983,200 to supplement the general operations of the national government.
The FY2010 budget from over $53 million will be increased to $58 million.
Remengesau added that looking at the supplemental budget proposed, there were no proposal to restore cuts for certain entities which was supposed to be done based on the past budget deliberation, if money is available.
The senator said, cuts made in the budget of the state governments were supposed to be restored if the supplement is submitted.
Sen. Surangel Whipps Jr, in the session commented that instead the supplemental budget contains proposed increases in the Office of the president by 25 percent and to the president’s official expense.
“He is asking for about 100 percent increase,” Whipps said.
Whipps also questioned the urgency in the passage of the supplemental budget.
The supplemental budget also proposed new taxes as a source of revenue.
The government is seeking additional money for its operation.
The supplemental budget will cover to meet operating requirements obligations such as water and sewer system bills.
The money will be derived from the Compact of Free Association funding extension.
Under the extension, Palau has a direct assistance of at least $13 million and can withdraw at least $5 million from the U.S. Compact Trust Fund.
