Because the government is expecting to collect less in the next fiscal year, which starts on Oct. 1, Inos said “there is supposed to be a transition.”
This means government spending should now be gradually reduced to fit the budget based on the next fiscal year’s projection.
“We see the trend going down,” Inos said referring to the projected financial resources.
He noted that the government can only collect $122 million in the current fiscal year. The projection was $132 million.
For FY 2012, the government is expecting to collect $102 million only. This figure does not include the $18 million for the Department of Public Health which will soon become an autonomous public corporation.
Some lawmakers believe the FY 2012 budget will amount to $96 million only.
Inos said “we might be making some changes but we are not too sure yet.”
Tourism, the CNMI’s only industry, is in a “death valley” period right now, he added.
“I look at the budgeted activities right now and the figures are really telling,” he said. “With the exception of the hospital revenue which is also way, way down” the May collection is estimated to be $3 million to $4 million only.
The administration is now waiting for the monthly gross revenue tax data and can still submit a new revenue projection to the Legislature next month.
Inos earlier said that not all those who were exempted from the austerity measure last year would be exempted again.
