DEPARTMENT of Finance Secretary David DLG Atalig said, as of the third quarter of this fiscal year, the CNMI has an $11 million deficit.
“In terms of our deficit, as you know, as we move into a fiscal year, every fiscal year, we do our best to pay back and take care of outstanding invoices and expenditures from the previous fiscal years,” he said on Friday.
Atalig noted that the deficit is due to Covid-19 expenditures that the CNMI has incurred.
“We still are in a pandemic, and we are learning how to live with [Covid-19], but it doesn’t end the efforts that we are doing to [stay Covid-19]-free,” he said.
Atalig said programs and projects will be implemented soon, and they will help reduce the deficit.
“We’re pretty excited about getting our financials to a better state as we continue to move away from all the support we’ve received from the federal government. That’s been the plan. We work hard to try to ensure that we have a good return on our investment with the programs that we do with the [American Rescue Plan Act] funds,” he said.
He said a program is being rolled out to help small businesses grow and be successful, in hopes of returning the CNMI to pre-Covid-19 levels in terms of government revenue.
“We are on track, and we are doing really well, as we expected, because of the infusion of a lot of our [ARPA] funds,” he said.
In terms of revenue, the main driver has been the wage and salary tax collections, Atalig said.
He noted that the ARPA funds allowed the government to restore the 20% austerity cut that was implemented, as well as hire more people.
“Going forward, we still try to be very conscious on our spending and try to prolong and utilize what ARPA funds we have today,” said Atalig.
He said their next steps include more revenue-generating opportunities to help businesses, nonprofits, and the community create a more robust local economy.
This involves reviving and expanding the tourism industry, Atalig said.
“We’re working hard to bring in international travel so that it brings funds and revenues into our Commonwealth,” he said.
With the opening of a new interisland airline, Marianas Southern Airways, the tourism industry can help revive not only the economy on Saipan, but also Tinian and Rota’s, Atalig said.
“Holistically, we’re doing great. We partner really well with the Governor’s Council of Economic Advisers. The programs are coming together as we bring in and resume our tourism industry, so we’re excited about that. We’re opening up Japan…and we’re looking at other markets going forward to bring in tourism to our islands… That’s a big [economic] driver for us.”
