Government income projections for FY 2024 shows modest growth with taxes projected grow about 6% compared to this year FY 2023, from $41 million to $ 43 million. Only Licenses and fees show 32% increase over last year, probably due to low projection for FY 2023.
Postal revenue shows 4% projected increase over this year. All other sources of funds are projected to remain the same as this year with reduction in PPEF PIA. PPEF Green fee remain the same indicating expected number of visitors to be similar to FY 2023.
The projections indicate no major upward change in Palau’s economic position going into FY 2024. Budget allocation for the ministries show some increase in area of education, health and law enforcement but tourism and fisheries remain at nearly the same level as this year. No indication of investment into the revenue generating ministries. Focus is on the salary increases in the government sector, although in the budget transmittal, President Whipps urged OEK to pass the minimum wage bill pending in the House of Delegates.
Government, under the proposed budget, will drawdown $20 million from Compact Funds to finance the budget until the Compact Review Agreement is approved and funded by the US Congress. Compact Funds will be returned after the CRA funds are received, according to President Whipps’s transmittal of the FY 2024 budget.