Minister of Finance Kaleb Udui Jr. urged conservative spending by the government as it starts preparations for its FY 2022 budget.
“Local revenue makes up less than 40% of our budget, while the rest is funded by borrowed money and reserved funds,” stated Udui.
Government spending for FY 2021 as of March 31st was kept below projected to be the level of expenditure for the 2nd quarter, spending only 37% of the budgeted expenditure.
Local revenue, which is made up of taxes, fees, fishing rights fees and other locally generated revenue, is projected this year to be at $40m, nearly 50% below pre-covid level. This year’s budget is at $103 million, meaning that about $63 million comes from loans and the government reserve fund.
Costs incurred due to damages from Typhoon Surigae and refunds for nearly $1.8 million from WIOA benefits were two major expenditures not anticipated in the FY 2021 budget.
“We still need to be careful and control our expenditures while we take a cautious approach to the budget,” added Minister Kaleb Udui Jr.