FINANCE Secretary David DLG Atalig on Monday reported to the Legislature that government revenues collected in the second quarter of fiscal year 2022 — January to March — exceeded the forecast.
In his report to Speaker Edmund S. Villagomez and Senate President Jude U. Hofschneider, Atalig said the projected revenue for the second quarter was $36.4 million but the actual revenue was $38.5 million or 5.9% greater than the forecast.
But Atalig said it is important to note that this figure does not include the general special earmarked resources pursuant to the FY 2022 Budget Act.
Atalig said business gross revenue tax collection in the second quarter of the fiscal year grew by 21.8%.
The BGRT collections for the second quarter of FY 2022 was $17 million while the Northern Marianas Territorial Income Tax collections amounted to $3 million.
However, excise tax collections totaled $6.47 million or 28.1% less than the forecast. Also, the wage and salary tax collections stood at $6.17 million or approximately 0.7% less than the forecasted budget collection.
As for the corporate income tax collection, it was valued at $534,097 or 3.7% less than the forecast.
Expenditures
Atalig said year-to-date actual expenditures showed several items that had exceeded the appropriated budget.
The most prominent deficiency is the disaster expenditures that were not appropriated despite accumulating expenses of $13.3 million. Atalig said the overspending was the result of the CNMI’s effort to respond to the Covid-19 pandemic.
The Department of Public Safety, which was appropriated $2.4 million, spent $3.3 million; the Department of Corrections, which was allotted $1.3 million, spent $1.7 million; the Department of Fire and Emergency Medical Services, which was allotted $1.8 million, spent $2.2 million; and the Department of Finance, which was allotted $964,872, spent $1.1 million.
Outlook
Atalig said federal American Rescue Plan Act funds have supported CNMI government spending.
Under normal circumstances, he added, the tourism industry increases overall demand for goods and services in the CNMI.
This, in turn, results in increased business revenue and a demand for further imports that result in more excise tax collections.
Atalig said the partial resumption of charter flights from South Korea, and proposed flights from Japan may result in an increase in CNMI commercial activity.
However, he added, the restrictions placed on travelers and the size of the planned flight service resumption will not be sufficient to realize pre-Covid-19 levels of economic activity.
David DLG Atalig
