Halfway through this fiscal year 2021, the government reports 52% of the projected revenue to cover this year’s budget expenditures. It reported 60% collection of projected local revenues for the year, a collection of $24.1 million out of the $40.3 million expected local revenue and 44% of financing from COFA and loans. This year’s local revenue projection is half of FY 2019 pre-covid local revenue.
Local revenue collections saw 67% of taxes collected as of March 31, 2021, ending the second quarter. Other unrestricted revenue, including Licenses & Fees, Postal Revenues, and Fees and Charges, altogether was $22.1 million. Restricted revenue such as Hospital Trust Fund, Green Fees, Road Maintenance, PPEF and others raised nearly $2 million.
The rest of the financing for this year’s budget of $103.3 million is from COFA Trust Fund, General Reserve Fund and ADB loans. $27.9 has been drawn down with a balance remaining of $35 million.
By law, the government can withdraw $15m from the COFA Trust Fund each year to finance its operating budget. As of March 31, 2021, the COFA Trust Fund Investment market value stood at $307,541,711.
According to FY 2021 Unified Budget Act, the source of funds for the Executive Branch’s $47.9 million comes from the COFA Trust Funds, General Reserve Funds and loans while OEK, Judiciary, Boards & Commissions, Independent Agencies and all other expenditures are mostly financed by local revenue.
As of March 31, 2021, government long term debt stood at $66.9 million. This does not include loans to government autonomous agencies such as Belau Submarine Cable Corporation, Palau Public Utilities Corporation, Palau National Communications Corporation and Palau Airport Corporation where Palau government provides sovereign guarantee. (By: L.N. Reklai)

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