KOROR (Palau Horizon) — The Olbiil Era Kelulau, Palau’s bicameral legislature, has passed with amendments President Tommy Remengesau’s bill that proposes adjustments in the current budget to cover the shortfall in local revenues projected for fiscal year 2002.
The OEK revised the president’s version to obtain the needed $5 million from the Compact Capital Account Investment Earnings, instead of getting some of it from the Compact Energy Production Investment Earnings.
The lawmakers likewise took out certain projects from the bill while inserting specific projects under the state block grants section.
Remengesau’s version originally sought amendments to RPPL 5-38. The OEK, however, changed that and proposed instead to reallocate the money from the current budget.
The lawmakers reduced the proposed $1.09 million appropriation for repairs and upgrading of Koror-Airai water and wastewater systems to $650,000.
Of this amount, $150,000 is appropriated for the modification and repair of sand filters at the Airai water treatment plant while $200,000 will be used on a new No. 5 filter unit of the water plant. The remaining $300,000 will be used for two mini-satellite sewer pump stations in Malakal.
More than $200,000 is allotted to complete the Ngchesar water system.
The president’s bill was earlier described by some lawmakers as a supplemental budget measure.
However, Remengesau said he was not seeking an additional budget but an “adjustment” in this fiscal year’s budget in order to address the projected deficit in local revenues.
Remengesau said Palau was facing an estimated $4.4 million shortfall in local revenue collection, including the anticipated $1.3 million shortfall in “sin” taxes on tobacco and liquor.
The president earlier noted that tax revenue collection for beer alone was down by 66 percent.
