In 2004, the government posted a deficit of $105.9 million. By 2008, this rose to $235.872 million.
The government declared assets of over $95 million in 2004 but this plunged to $63,742,784 in 2008.
It posted total revenues of $210 million in 2004.
This grew to over $214 million the next year but fell to $193 million in 2006.
In 2007, the government’s total revenues dropped to over $159 million but it recovered in 2008 with earnings of as much as over $195 million.
The OPA report did not explain how this happened.
The once over a billion-dollar Saipan garment manufacturing industry shut down in March 2009 with the closure of the last factory on island.
“During the last few years, the CNMI’s economic condition has been greatly affected by global policies and influences, natural disasters and terrorism, among others,” the OPA report said.
“The effect of the above condition is the potential for inadequate cash flow to meet current obligations. It appears that this condition has been mitigated by the increase in the liability to the Northern Mariana Islands Retirement Fund. We recommend that the CNMI review its various functions to ensure adequate cash flows are available to meet current obligations,” it added.
In fiscal year 2007, the Fitial administration implemented austerity Fridays or the forced shutdown of public offices every other Friday to save at least 10 percent in terms of personnel expenses.
But the government’s deficit continued to accumulate.
Statistics from the Department of Finance showed that the government incurred an additional deficit of $16 million in fiscal year 2009 and $25 million more as of the second quarter of the current fiscal year 2010.
The government needs at least $5.13 million every two weeks for the salaries of its personnel.
Autonomous government agencies with independent revenue sources such as the Commonwealth Ports Authority and the Commonwealth Utilities Corp. have their separate operations and personnel budgets.
