Gov. Benigno R. Fitial said his priority is to ensure that there’s enough funding for the payroll of the government’s about 4,000 employees.
The government currently operates on the revised FY 2007 budget of $163.5 million.
Data from the Department of Commerce showed that the government’s expenditures for the second quarter of FY 2008 rose by 22 percent to $46.4 million from $38 million over the same period in FY 2007.
Although its expenditures went up, its collections for the second quarter went down by 0.1 percent to $39.5 million.
The administration’s budget proposal for FY 2009 amounts to $156.7 million.
The projected total revenues for the incoming fiscal year will reach $169.5 million.
However, close to $13 million of this amount is allocated to certain programs, including bond payments.
Fitial said the Department of Finance continues to find ways to increase government revenues.
Certain license fees were doubled this year but collections are still low.
The government’s fiscal situation is further aggravated by the continuing downturn in tourist arrivals and the gradual phaseout of the garment industry on island.
The House of Representatives is scheduled to hold a session this Friday and the budget is expected to be on its agenda.
The budget proposal must originate from the House.
The Office of the Public Auditor has reported that the CNMI’s accumulated deficit is now over $218 million mainly because of the government’s failure to settle its financial obligations to the local pension program.
