THE executive branch is also considering an across-the-board reduction in working hours and personnel to prevent deficit spending, Gov. Juan N. Babauta said on Monday.
“We may have to take drastic measures,” Babauta said.
The governor was reacting to the decision of the House of Representatives to reduce the working hours of the lawmakers’ staff.
Speaker Heinz S. Hofschneider, R-Saipan, said they had to implement their own cost-cutting measures following the administration’s decision to reduce each lawmaker’s budget by 16.3 percent.
Babauta said there will be no “unfair treatment” in the reduction of spending levels.
“We are all in the same boat. We are not treating any particular office special,” Babauta said.
The CNMI government’s revenue has been declining since 1998, but administration officials are confident that this year’s first quarter collection of business gross revenue and income taxes will help prevent deficit spending.
“The revenue seems to be increasing and we hope that it continues to go in that direction,” the governor said in an earlier interview.
Acting Finance Secretary Villanueva announced during the last Cabinet meeting that they were expecting revised revenue projections for this fiscal year by the end of April.
The fiscal year 2002 projected revenue is down by 6 percent to $192.369 million from the $206 million that was originally anticipated by the previous administration.
