Friday, September 19, 2014

FSM Vice President Alik asks Congress for $1.3 million as FY14 supplemental budget

FSMIS (September 19, 2014): On September 15th, the first day of the Fifth Regular Session of the Eighteenth Congress of the Federated States of Micronesia, Vice President Alik L. Alik transmitted a supplemental budget request in the amount of $1,334,855 to fund activities for certain departments in the Executive Branch, a court judgment against the FSM National Government, and a Public Project Implementation Workshop activity throughout the FSM states.

The requested amount is broken down six ways:
1.     Tax Reform -- $384,370: This amount is for the purpose of activating the Unified Revenue Administration, as established by FSM law. The Customs and Tax Administration for FSM and the Tax Offices for the states are to be unified under one system that will oversee the administration of tax for the governments.
2.     New Ship -- $310,902: FSM is expecting a new ship from the Government of Japan estimated to be available in March, 2015. The requested amount will cover the initial operating cost for the ship.
3.     Patrol Boats repair -- $421,826: This is for the repair of FSS Palikir ($299,845) and FSS Micronesia ($121,981).
4.     Court Judgment -- $52,757: This amount constitutes a final court judgment issued by the FSM Supreme Court against the FSM National Government.
5.      2023 Planning Committee -- $150,000: The amount will augment funding for the activities of the 2023 Planning Committee. The activities include the assessment of financial situation of the post-2023 era, identifying funding scenarios, and completing recommendation on action plan to address budgetary shortfall.
6.     Public Project Implementation Workshop -- $15,000: The amount will be used towards the strengthening of public management  in the implementation of public projects. This will entail conducting workshop with the objective of improving fiscal responsibility, transparency and accountability.

As of report time, Congress has not approved the requested amount.

Vice President Alik informed Congress during his meeting with the Committee to Wait on the President on September 16th that the FSM Government anticipates collecting around $3 million in revenue collection during the remaining days of Fiscal Year 2014 to cover the $800,000 reported as shortfall in revenue collection.

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