Government expenditures in the first quarter of FY 2022 are contained below 25% of the annual budget at 22% overall. Overall local revenue collections were near the target at 23% collected for the quarter.
With a thin budget of $85 million for this year, the government is aiming to further reduce its expenditures by at least 10%. So far the Executive has managed its expenditures spending only 19% overall quarter ending December 31, 2021.
OEK, Judiciary, State block grants, debt service, and others kept close with overall expenditures at 22% of the budget.
On the local revenue side, the government collected 23% of the projected local revenue for the year. The first-quarter financial report showed that taxes collected was at 15% of the projected amount or 5 million out of the 34.3 million projected, much lower than 2021 1st quarter performance.
Most glaring was the business gross receipt taxes that showed only 1% collected over the projected amount. 156 thousand was collected out of the 11 million projected. The report also showed strong Hotel Occupancy Tax collection. 52% of the projected Hotel Occupancy Tax was collected in the first quarter which indicates that more visitors arrived than was projected in the budget.
Other positive include business licenses and fishing days, both of which performed very well with 57% collected over projected income. 3.8 million was collected over the expected 6.7 million fishing days revenue for FY 2022.
Overall, the first quarter of FY 2022 remained within acceptable levels of performance. This all occurred before covid surges and it remains to be seen if the performance remains on track. (By: L.N. Reklai)