On Friday night, the Olbiil Era Kelulau passed the measure earmarking an additional $4.5 million into the 2010 budget.
Benefiting the most from the supplemental budget were the Senate, House of Delegates and the President’s Office which gained more than 10 percent funding.
The FY2010 budget was slashed by 10 percent when it was first proposed due to uncertainty of the economic assistance under the Compact of Free Association with the United States.
After the U.S. granted a one year extension, the Executive Branch proposed the supplemental budget to restore the cuts made.
Sen. Surangel Whipps Jr. however said that the Senate, HOD and the President’s Office gave themselves more than 10 percent funding.
Sen. Whipps described the supplemental budget as “irresponsible.”
“And to put icing on the cake, they had a pay raise, what about the people,” Whipps said.
The 2010 budget projections for local revenues are $1.5 million short for the first six months and could increase to $3 million by the year ends which could translate to $8 million added on the deficit in just two years.
Whipps said that the International Monetary Fund has warned the government against enacting a supplemental budget saying that it should live within its means.
“We have a leadership that has no clue where we are headed. Our president says in the SORA that he wants to make sure when he leaves we are debt-free. So far he has only managed to pile on more debt. Who is he kidding,” Whipps added.
Whipps, SenRaynold Oiluch did not vote for the measure. Sens. Adalbert Eledui, Hokkons Baules had reservations on the measure.
In the supplemental budget the president is requesting nearly a $1 million for his office which is an additional $200,000.
The House version of the supplemental budget reduced the Senate’s budget from $1,755,000 to 1,579,500 while the House increased their budget from $1,758,000 to $1,882,200.
The new law earmarked $1, 649,500 for the Senate and $1,807,200 for the HOD.
The President’s Office will get $685,000.
In the president’s transmittal letter to the OEK leaders however said the budget does not sufficiently fund other services of the national government.
He also said that Palau does not have enough revenues for the services of the national government.
The supplemental budget law also raised the president’s salary from $50,000 to $90,000 a year; Vice president from $45,000 to $65,000 and Ministers from $30,000 to $50,000.
The condition however stated in the new law is that the hike will only happen if the national government will find sources of funding.
That is an additional $160,000 funding to get the increase.
