The HOD on Wednesday passed on first reading the proposed budget introduced by President Johnson Toribiong on Saturday.
The budget proposal amounts to $60,287,987 but only appropriated $58,787,987.The country is now operating under a continuing resolution, Toribiong said to ensure the immediate needs of the country for the remainder of 2009 fiscal year.The proposed financial package maintained the fund levels similar to the 2008 budget. Toribiong said that the budget reflects a reduction in government spending because of the current economic climate locally and is hopeful that Congress will also contribute in passing legislation that will generate new revenues.Remaining obligations he said can be addressed through a supplemental budget and in the 2010 budget.The bill proposed appropriations of $34,104,286 for the operational and contingent expenses of the Executive Branch, while the Judicial Branch gets appropriation of $2,219,000 while the legislative branch gets $3,668,000.The bill also stated that the remaining balance in the amount of $2,380,431 of the Palau Public Utilities Corporation (PPUC) be reverted back to the National Treasury to defray the shortfall for FY 2009 local allocations.The bill also proposed appropriations of $2,782,558 to debt service; $1,546,000 to low-income household assistance; $500,000 for Compact Review fund , to finance the conduct of review and discussions regarding the Compact.
