In a letter to Senate President Mlib Tmetuchl , said that there are several considerations that needed to be taken up in coming up with a budget.
He said the from the period from Oct. 1, 2008 to Jan. 15, 2009, over $4 million was spent in the first quarter to retire prior year debts of the previous administration with over $2 million still left to be paid.“This commitment of funds, contrary to budget authorization and appropriation laws placed a considerable financial strain on the incoming administration and the fiscal responsibilities of maintaining government operations,” Mariur said in his letter.He also noted that in just over three months, $23 million had already been spent by the government before the new administration took office.He said that the 2009 budget was shared by the outgoing and the administration of President Johnson Toribiong.He said because of this there is a projected revenue shortfall of over $9 million and $2 million in prior year debts.He said that the shortfall was due to the declining revenue collections, a reduction in tourist arrivals and due to the global economic crisis.Mariur added the revenue shortfall is also compounded by the expiration of the financial provision of the Compact of Free Association between Palau and the United States government.“There remains a general apprehension that it may mean reduced Compact assistance. With the above considerations and remaining obligations to fulfill, a revenue shortfall of approximately 5 million is projected for the 2009 fiscal year and an added 4 million in 2010 if compact assistance is not maintained at its current levels, “ Mariur stressed.He said the government is considering utilizing reprogramming authority to maintain operations and meet the needs for FY2010.He added that the government should continue to live within its means because as it is the government have “labored hard to meet each payroll and other obligations.”The Vice President also noted that there might be a need to introduce and pass a separate supplemental budget but funding sources should be identified.A 10 percent across the board reduction for all budget activities is being considered.“These and other considerations demand that as leaders of this nation, we must continue to work together to maintain cost savings and insist on reducing expenditures so that the public is assured of the services we have a duty to provide,” Mariur said.He added though that Congress should come up will laws to fund government operations based on the realities of the current circumstances.Again, it is imperative that we embark on the task of funding government operations based on the realities of current circumstances. I trust that these are vital concerns we all share and have no doubt you and your colleagues are prepared to work with the Executive Branch to address.Be assured that the FY 2010 Annual Budget will be submitted by the President to Congress prior to its July Regular Session. I look forward to productive deliberations in both Houses and your sound contributions during the budget proceedings. Thank you.
