President Mori submits the FY2013 Comprehensive Budget Request to Congress
Palikir, Pohnpei (FSM Information Services): April 11, 2012 - In line with constitutional and statutory requirements, on Sunday, April 1, 2012 President Manny Mori transmitted to Congress the FY2013 Budget Request. In his transmittal letter to Speaker Isaac V. Figir, President Mori stressed his concerns over the nation's progress in preparing itself for the annual decrements in the Amended Compact funding and the longer-term challenge of preparing itself for 2023 when Compact grants are scheduled to expire. He noted that the FY2013 Budget is critical as it can set the stage for moving toward 2023.
The total revenue from all fund sources for FY2013 is projected to be $57,079,288, of which 75.4% (or $43,054,800) is from local revenues including tax and non-tax revenue, 16.3% (or $9,318,401) is from Compact Sector and SEG grants, and 8.2% (or $4,706,087) is from US Federal Programs and other grants. Even though the Federal Programs and other grants revenue projections and corresponding budgeted spending is included as part of the comprehensive budget request submitted by the President each year, Congress only appropriates the local revenues, Compact Sector and SEG portion of the budget.
Total revenue from all fund sources is projected to increase by a total of $4,070,101 or by 7.7%; of this overall increase $3,387,968 is from increase expected on our domestic revenue. President Mori expressed confidence in the level of local revenues projected in the FY2013 Budget, noting in his transmittal letter to Speaker Figir that information on our domestic revenue from the Department of Finance and Administration, NORMA, Micronesian Registration Advisors, Inc. and other revenue sources provide basis for believing that the projected amount of a little over $43 million is still on the conservative side.
As in the past, the President submitted a balanced budget that specifies how the entire amount identified in available revenues will be expended. Of the overall budget request of $57,079,288, approximately 56% ($32,122,788) is requested for government operations and the remaining 44% ($24,956,500) for investment. President Mori noted in his budget transmittal that the projected increase in revenue is going to the investment side of the budget as a clear indication of his commitment to containing the budget for government operations. While there is a 7% increase in the operating budget, the investment budget is proposed to increase by 26.4% from FY2012 approved level. The President also pointed out that part of the 7% increase in operation budget results from the shifting of a number of budget items that were previously included on the investment side of the budget to the operation side. These items include $30,000 for Public Defender, $750,000 for slippage of surveillance boats and fuel subsidy under the Department of Justice and $.2 million under the Department of Health and Social Affairs.
On the domestic revenue side of the budget, 55.5% ($23,889,485) is requested for the operation side of the budget while 44.5% ($19,165,315) is for investments. Compared to FY2012 budget levels, the domestic revenue budget for government operations is increased by 5.7% while the budget on investments has increased by 30.4%. President Mori and his key staff working in putting together the revenue projections are very confident that not only is the projected increase in revenue achievable, but that actual collection in the upcoming fiscal year can go beyond the projected amount.
President Mori also highlighted these funding requests that he considers critical in supporting business opportunities and long term growth:
Also part of the budget request is $1.4 million to fund social and economic development projects. President Mori pointed out that public projects are a part of any government.
However, he went on to advocate that allocation of government resources to fund public projects should be informed by advanced planning to ensure greater linkage to the Strategic Development Plan for the country and public hearing so as to improve the effectiveness of the projects. It is precisely for these reasons that the FY2013 Budget from the President has included the requested amount for projects to be considered as part of the budget process instead of past practice of considering project appropriations in isolation of the budget.
President Mori also requested Congress support for funding requests in the budget to assist the State Governments and these include the following:
President Mori indicated that he looks forward to working together with Congress to finalize the budget at least two weeks before the beginning of the fiscal year. FY2013 begins October 1, 2012.
For more information, please contact the Division of Budget and Economic Management at the FSM Office of SBOC at (691) 320-2823.
For further information on this release, please contact:
FSM Office of the President Public Information: Press, Radio, Video P.O Box 34 Palikir Station, Pohnpei, FM 96941 Tel.: (691) 320-2548/2092 Fax.: (691) 320-4356 e-mail: firstname.lastname@example.org http://www.fsmpio.fm/