CNMI govt sees ‘very positive’ outlook for 2005

The Babauta administration foresees improved economic conditions in 2005, citing $20 million in additional revenues by the end of the current fiscal year.

Finance Secretary Fermin Atalig said yesterday that, based on the trend in the first two months of fiscal year 2005, the government would realize $5 million in additional revenues every quarter.

“Revenues went up in almost every category. Preliminary revenues for October and November 2004 show a substantial increase over the same period in the prior year,” said Atalig, soon after yesterday’s Cabinet meeting.

Based on overall economic indicators, Gov. Juan N. Babauta said the CNMI economy will perform better in the coming year.

“The economy is on the up a lot. Things are looking very positive in the next year due to the sudden sprouting of businesses all over the island,” he said, citing reports from the Department of Commerce of increased issuance of business permits in the last several months.

“Businesses are coming back. The confidence in the local economy is picking up,” he said, noting that it may have been influenced by the good economic showing of Japan and the rest of Asia.

Babauta also said that increased federal assistance boosted the local economy.

“There have been a lot of federal money invested in the CNMI through capital improvement projects, special grants, and other funding sources,” he said.

Meantime, Atalig reported that General Fund revenues in the first two months of the current fiscal year totaled $34.8 million—about 19 percent higher than the $29.3 million collection during the same period last year.

Data from the Department of Finance said that total taxes as of Nov. 30, 2004 reached $29.9 million as compared with $26.3 million in FY 2004.

Atalig said all taxes went up, except for tax penalties and interests due to the ongoing tax amnesty in the CNMI.

Total fees, services, and other revenues totaled nearly $5 million in the first two months of FY 2005, which is about $2 million more than last year.

Overall, Atalig said fiscal year 2005 would be better due to increased tax collection, increased international flights, and increased investments in the local economy.

In tourism, the CNMI expects to benefit tremendously from the China market in view of its signing of the Approved Destination Status with China next week.

The CNMI hopes to receive some 55,000 Chinese tourists in 2005.