It will be the Senate’s turn to initiate budget deliberation.
THE proposed Fiscal Year 2010 budget is $53,709,000, $5,000,000 less than the FY2009 financial package.President Johnson Toribiong said that the proposed financial package was formulated in line with his policy that the government should live within the means.House Committee on Ways and Means chairman Del. Jonathan Isechal said that the budget bill is fair and took into consideration the economic situation of Palau.“However it needs to be balanced,” Isechal said.Tthe budget has been formulated in anticipation that effective Oct. 1, 2009, the funding received by Palau from the United States under the Compact of Free Association will cease.By Oct. 1, the republic will only be able to draw down $15 million from the Compact Trust Fund.Toribiong said once the U.S. Congress passes the funding for the Compact extension he will work with OEK to amend the bill or submit a supplemental budget.The measure however authorized the sum of $1,500,000 for low- income household assistance for low-income families.An amount of $600,000 is authorized for the hosting of Micronesian Games in Palau in 2010.The president has also asked Congress to take prompt action to restore the social security benefits for those who have been stripped off of their benefits by the passage of RPPL No. 7-32.The president also asked the lawmakers “in finding ways and in taking affirmative action to increase the tax base in Palau so as to generate more tax revenues to sustain our government activities.” The government expect a shortfall of $9 million including a local revenue deficit of $4 million. The president has urged lawmakers to act on revenue generating bills pending before both houses such as the Shipping Registry, Corporate Registry and Foreign Investment Act.The measure also contains request to increase the salaries of the President, Vice President and the ministers.Isechal said that he supports the request but need to find funding sources to pay for the increase.Isechal said the budget will be taken up by the House after the Senate.
