By Emmanuel T. Erediano
[email protected]
Variety News Staff
THE CNMI government’s revenue collection for the month of March exceeded the projection by $304,000, or 2%, Finance Secretary Tracy B. Norita said in her report to the Legislature.
The projection was $12.7 million, Norita told Senate President Karl King-Nabors and Speaker Edmund S. Villagomez in her monthly report pursuant to Public Law 24-20, which provides a comprehensive summary of the Commonwealth’s general financial performance through March 31, 2026.
Actual collections for March 2026 totaled $13 million, exceeding the forecast by 2% and helping to offset shortfalls recorded in January and February. However, despite this improvement, Norita said cumulative collections remain $716,000 below forecast, or 1% lower than projected.
The overall deficit, she said, is primarily driven by a 2% shortfall in total taxes, largely due to declines in key revenue sources, including the business gross revenue tax, which fell by 4%; the hotel occupancy tax, which decreased by 22%; and the non-aviation fuel tax, which dropped by 31%. These declines are mainly attributed to the significant reduction in tourist arrivals, she added.
Amid the downturn in tourist arrivals, Norita also reported $48.5 million in government expenditures. Although this reflects an available balance of $10.3 million from a $58.8 million budget allotment, she said the balance “is not indicative of the projected fiscal year-end position.” She explained that due to the implementation of a $4.4 million proportional reduction, monthly allotments have been reduced moving forward.
As a result, the government anticipates that most departments and agencies may experience funding shortfalls by the end of the fiscal year if expenditure levels are not adjusted accordingly.
The next quarterly report, covering April to June, is expected to reflect the impact of Super Typhoon Sinlaku on the local economy and government revenue collections.
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.
