Vice President and Finance Minister Kerai Mariur, in an interview, projects a local revenue shortfall of almost $5 million in addition to the end of the financial assistance provisions of the Compact of Free of Association with the U.S. in October.
Under these provisions, Palau receives at least $14 million in grants and subsidies and $5 million from the Compact trust fund.Although Palau is allowed to withdraw $15 million from the trust fund in October, this island nation will no longer get the additional $4 million provided by the Compact.In a separate interview, House Committee on Ways and Means Chairman Jonathan Isechal said under the law, the FY 2010 budget should have been submitted last April 15.Isechal said the president has yet to submit the budget.Mariur said the proposed budget will be transmitted to the national legislature next month.“It is a tough time due to the challenges but we are working on the budget,” he said.The administration, he added, may ask lawmakers to pass a supplemental budget because of the $6 million shortfall in the FY 2009 budget.Mariur said the president’s reprogramming authority may be utilized to identify sources of funding.
