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Inos: Estimated deficit at $9M for FY 2011
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Posted on Oct 09 2011
Acting governor Eloy S. Inos said preliminary estimates show that the CNMI government’s deficit could be $9 million mainly because expenditures exceeded allotments for medical referral and Medicaid as well as the deferred employer contributions to the NMI Retirement Fund.
Inos, who oversees government finances, said the government was able to collect close to its revised $122 million—from $132 million—in projected revenue available for spending, but it’s always the healthcare-related spending that goes beyond allotments.
“Revenue-wise, we expect to come in within the ballpark figure…it’s the expenditure side that is the problem,” he said.
Inos said the administration would have its FY 2011 report by end-December.
But in the first half of FY 2011, government revenue was short by over $1.087 million mainly because of low hospital collections.
During the same period, expenditures exceeded allotments by $657,236, also primarily because of hospital expenses and medical referral.
Finance said actual revenue in the first half of the year totaled only $56,540,964, which was $1,087 or almost 2 percent below the estimate of $57,628,750.
Were it not for the hospital collection, which was $3.319 million less than estimate, there would have been a surplus in the first half of the year.
[B]Commonwealth Cultural Day[/B]In other news, Inos called on the community to take pride in their culture, tradition, and heritage as the Commonwealth observes Cultural Day today.
The government holiday used to be Columbus Day until it was changed to Commonwealth Cultural Day.
Press secretary Angel Demapan separately said this is a time to reflect on the noble traditions and culture passed on by ancestors.
Cultural Day is part of a four-day holiday for many government employees—austerity Friday, Saturday, Sunday, and today’s holiday.
