President Toribiong’s proposed budget was $759,000 which was cut by the House version to $700,000.
Toribiong proposed a $341,000 budget for the Bureau which was slashed to $200,000.
Sen. Surangel Whipps Jr. who is a member of the Senate of Ways and Means Committee said that he will propose that the budgets of agencies such as the President’s Office and Congress be further cut to five percent to show the public that they are willing to impose austerity measures.
“We should be role models,” Whipps said.
Whipps added that he will propose to Sen. Mark Rudimch, chair of the panel to conduct public hearings at least in the three agencies.
“In the spirit of transparency we should be scrutinized and reviewed,” he said.
Whipps further added that the House did a good job in making an assessment of the country’s finances.
He said the House version did a better job in the allocation of the funds.
The House of Delegates passed last week its version of the Fiscal Year 2011, increasing it to $4 million more, saying that the economy and local revenues collection looks upbeat next year.
The delegates passed on third and final reading a proposed budget of $58,369,000.
The House Committee on Ways and Means said that based on the Funds Availability Analysis, projections could have been readjusted for a better projection.
Toribiong’s version called for a spending ceiling of $54.2 million, of which $36 million is derived from locally generated funds with the remaining $18.25 to come from Compact assistance, including the Compact Trust Fund.
The House Committee on Ways and Means in its committee report stated considering all financial information the local revenues can be projected at $37 million and is convinced that FY2011 is a lot better than 2010.
The delegates proposes in its version of the FY2010 budget that the government impose a 35 percent increase in water utility charges and an additional import tax of three percent tax a two percent increase in taxes on wages and salary earning beyond $25,000.
The HOD also supported a proposed scuba diving fee of $5 per day of diving.
A hotel room tax increase of five percent, departure tax increase of two percent and port use fees of nine percent.
The House said that this revenue enhancing measures will have minimal or no significant in the citizens and residents of Palau.
These new measures are projected to raise no less than $2 million in additional local revenues.
Toribiong said his version was a more “conservative “one because he doesn’t want to raise the expectations.
He agrees though that 2011 looks promising with the tourism sector improving.
The measure has been transmitted to the Senate. A session will be conducted today at the Senate.
