President Surangel Whipps jr. signed into law, RPPL 11-13, the Palau government’s Fiscal Responsibility Act.
The law is “codifying and memorializing and putting into legislative commitment what government has been doing, putting itself into a good situation until covid and enhancing it just a little bit at the margins,” summarized Economist Kevin O’Keef of USA Graduate School of the Fiscal Responsibility Act.
Some of the key components of the law include “managing the budget, taking care of the reserves, managing debt, managing revenues, managing state-owned enterprises, managing contingent liabilities, and managing risk” explained Casmir Remengesau of the Ministry of Finance.
Whipps in signing the bill into law said that it “updates the fiscal management provisions guiding our Ministry of Finance and incorporates fiscal best practices which the Ministry has largely been practicing of its own volition.”
Furthermore, he said, the “fiscal management is even more necessary during tough economic times such as these” and applauds OEK for passing the bill “to ensure that we earn the trust of the public through the careful and transparent management of public funds.”
The law is one of the requirements of the Asian Development Bank for the Policy-Based Loans it issued to Palau especially the last $15 million to cover the FY 2022 budget. (By: L.N. Reklai)