Last week the House of Delegates Committee on Ways and Means wrapped up public hearings on the Fiscal Year 2011 budget and is ready to issue the committee report this week, as Congress opens its July regular session today.
The president in his letter said that an increase in the proposed budget can only be possible if the OEK can identify the revenues to pay the increase or if they fail to do so , another $2,000,000 will be slashed from the budget.
The president said that Congress should stick within his proposed budget in light of the country’s lagging economy.
He noted that the FY2011 budget was made to absorb the approximate seven percent decrease in the gross domestic product , either by cutting back the size of the government, increasing revenues or by the combination of the two.
“My budget was constructed with this in mind. I have offered both a decrease in government expenditures and increase in taxes,” the president said.
The president said Palau needs to show its donor countries that the citizens of Palau are taking action to cut expenditures.
He said that even governments around the worlds are suffering from a bad global economy.
“How can we expect those same governments to continue providing financial assistance if we are not willing to ask our citizens to make same sort of sacrifices they are requiring of their citizens? The short and simple answer is that we cannot,” he stated.
He said if the lawmakers decide to redistribute the revenues available in a manner drastically different than what he has proposed, a justification is needed.
Del. Secilil Elbechel, committee chair said that members of the committee are in the process of analyzing the proposed budget.
“We are now analyzing the budget mindful of the president’s concern to keep the budget balanced at the same time mindful of the fact that some entities’ budget were reduced and whether the cuts will jeopardize their services,” Elbechel said.
He earlier added that the committee is also considering passing some of the proposed tax measure.
The proposal calls for a spending ceiling of $54.2 million, of which $36 million is derived from locally generated funds with the remaining $18.25 to come from Compact assistance, including the Compact Trust Fund.
Elbechel said the Senate has also vowed not to stray away too much from the figures that the panel will be proposed to ensure that there will be no delay in the passage of the funding package.
