By Emmanuel T. Erediano
[email protected]
Variety News Staff
THE Department of Finance on Monday reported a $1.2 million revenue shortfall for the first quarter of fiscal year 2026.
In her quarterly report, Finance Secretary Tracy B. Norita informed Senate President Karl King-Nabors and Speaker Edmund S. Villagomez that as of Dec. 31, 2025, the CNMI government had collected $36.4 million, falling $1.2 million, or 3%, short of the $37.6 million revenue forecast.
Cumulative gross tax collections for the first quarter reached $33.4 million, below the $34.1 million quarterly projection by $770,661, or 2%, driven by weak performance in income tax and “other taxes” categories. Income tax collections totaled $26.4 million, $342,286, or 1%, short of the $26.8 million forecast. “Other taxes” amounted to $6.9 million, $428,376, or 6%, below the $7.4 million projection.
Collections from fees, services, and other revenues totaled $427,190, significantly below the $1.2 million target by $760,949, or 64%. According to the report, this shortfall was driven primarily by charges for services, which amounted to $424,033, falling $732,349, or 63%, below the $1.2 million forecast due to underperformance in indirect cost reimbursements and other service charges.
Gross indirect cost reimbursement collections totaled $154,074, $361,853, or 70%, below the $515,927 forecast, while other charges for services reached $61,199, falling $335,509, or 85%, short of the $396,708 projection. “Other revenue” collections totaled $3,158, $28,599, or 90%, below the $31,757 forecast.
However, Finance reported “strong performance” in license revenues. Amusement machine licenses generated $1.1 million, exceeding quarterly projections by $243,950, or 27%, while other license fees totaled $1.5 million, $49,974, or 4%, above the forecast.
Overall, Norita said, while increases in license and fee collections — mainly from amusement machines and the e-gaming industry — boosted revenue, the gains were offset by underperformance in employee income-based taxes, consumption taxes on imported goods, and construction/infrastructure development taxes.
Norita also reported actual expenditures of $25.2 million, below the budget allotment of $36.4 million, leaving an available balance of $11.2 million.
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
