Reduction in expenses exceeds revenue decline

Austerity measures put in place by the Tenorio Administration reaped good fruits as indicated by the sharp reduction in overall government expenditures that even exceeded contraction in revenues last year, a report from the Department of Finance said.

Government revenues in 1999 dropped by about 20 percent compared with the previous year, while expenditures in three major areas had been reduced by an average of 66 percent.

During the same period, the Executive Branch managed to push overtime expenses lower by at least 56 percent, travel spending by 73 percent, and expenditures for vehicle leases and purchase by 76 percent.

Government-wide personnel overtime costs dropped 61 percent in 1999 to $3.8 million from close to $10 million in 1997.

Overtime expenses by the governor’s office fell by 88 percent to only $79,000 last year from about $665,000 in 1997.

The DOF report also noted that executive departments, except for the Department of Community and Cultural Affairs which showed a three percent increase, reduced overtime expenditures by between 46 percent and 100 percent.

The commerce department and the Office of the Lieutenant Governor, as well as the Saipan mayor’s office, totally eliminated overtime expenses last year.

The public works department cut down overtime by 97.5 percent, Rota mayor’s office by 86 percent and Tinian by 64 percent compared with the 1997 level.

Capitol Hill also reported that the dramatic reduction in expenses, resulting from the government-wide cost cutting measures, enabled the Tenorio Administration to relieve the $80 million budget deficit by $10 million.

Bulk of the deficit, according to government reports, was incurred by the office of former Governor Froilan C. Tenorio whose actual expenditures exceeded amount budgeted for that fiscal year by $10.09 million.

Gov. Pedro P. Tenorio said his administration will continue implementation of belt-tightening measures in efforts to further cut the budget deficit.

A media statement from the Office of the Governor pointed out that the reduction in overall government expenses is “far greater” than the actual contraction of 1999 revenues.

“[These] clearly demonstrate that the promise to eliminate waste, inefficiency, and unnecessary expenditures from the previous administration is being kept,” the statement stressed.

It added that similar reductions are found in other areas such as communications, consultants, special contracts and others.

While it plans to continue efforts to cut down government expenses, the administration is also finalizing an economic blueprint that aims to increase non-tax revenues and support growth of business and tourism.