Of the total, $39 million will come from domestic revenue and $14 million from other sources, including Compact grants and other foreign aids.
In a very detailed 10-page transmittal letter, Mori said the FY 2011 budget proposal calls for major reforms by shifting the overall focus and resource allocation from general operations and taking serious actions on issues that have been neglected for far too long, such as capital formation through investment in private sector development and human capital, physical infrastructure, as well as long-term savings and investment.
He also noted that the 2011 budget continues to move the national government toward a performance budgeting format, which will focus decision-making on actual performance.
While holding operational expenditures to a slight increase, the budget proposes a $14.6 million investment in capital and human resources development for FY 2011, an increase of $3.67 million or 34 percent over the current FY ‘10 budget.
The budget also proposes a $9.49 million budget for grants, subsidies and contributions, an increase of $4.16 million, or 78 percent over the FY 2010 level of $5.33 million.
Top funding priorities in the FY 2011 budget include: $5.14 million for the College of Micronesia-FSM; $4.91 million for capital improvement programs; $2 million to subsidize and strengthen the FSM Social Security program; $1.5 million to capitalize the FSM Trust Fund; $1.5 million to finance the Scholarship Fund; $1 million to develop financial institutions, $600,000 to assist non-public schools, and $500,000 to capitalize a new National Employee Pension Plan.
The operations budget of $28,949,713 for the three branches, the Public Auditor’s Office, all national agencies, boards and commissions represents a 7 percent increase or approximately $1.9 million over the Fiscal Year 2010 operations budget.
As in the past, the proposed budget represents a balanced budget, matching $53,044,445 in projected revenues to the proposed total expenditure of $53,044,445.
The projected revenues for FY 2011 were conservatively estimated after a careful analysis of audited financial statements since 2006, and the actual and revised projections for 2009 and 2010, to ensure a strong financial base for the coming fiscal year. The forecast also took into account outlook of the economy for the next two years.
