Committee chair Secilil Eldebechel in an interview said that the House has immediately passed the measure on first reading and was assigned to his committee.
Eldebechel added that his committee will also be holding a budget oversight hearing.
“We will review the current and past budgets and how it is being implemented by the department people to justify the next fiscal year’s budget,” he said.
The chairman said the committee has already sent out notices to several government agencies regarding the scheduled public hearings.
President Johnson Toribiong on Wednesday submitted the proposed Fiscal Year 2011 budget proposing salary cuts of government officials and new form of taxes to raise additional revenues.
The proposal calls for a spending ceiling of $54.2 million, of which $36 million is derived from locally generated funds with the remaining $18.25 to come from Compact assistance, including the Compact Trust Fund.
Toribiong also proposed to increase anew hotel room tax from 10 to 15 percent, collect departure tax of $20 from Palauan citizens, increase import tax on foodstuffs, additional tax on divers and raise taxes collected from employees earning $25,000 or more a year.
The president said these will translate to about $2 million in revenues.
The proposed budget also recommends a 10 percent reduction in salary for the President, the Vice President, Ministers and the 29 members of the Olbiil Era Kelulau.
The President says the salary cut will save the government $195,500.
