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‘Economic viability key to reducing deficit’
From $251M in 2005, public debt down to $144M in 2015
Gov. Ralph DLG Torres said the CNMI’s economy is key to whittling down the government’s $144.7-million debt as the governor last week announced its $258.1-million proposed budget for fiscal year 2019.
Citing a 2017 Government Accountability Office report, a statement from the Torres administration said that the economy was the key to settling the CNMI’s total public debt of $144.7 million as recorded for fiscal year 2015.
While Torres’ budget did not specifically set aside a certain amount for the debt, the statement noted that the CNMI public debt was $251.7 million for fiscal year 2005, indicating a drastic decrease of public debt at 42.5 percent.
“This figure does not include the governor and Legislature’s commitment to addressing several longstanding government obligations such as land compensation and settlements over the last two years, which amount to an additional decrease in the debt by about $50 million,” the statement said.
A few months ago, Torres signed into law a bill that appropriates money obtained from the Casino Gross Tax Revenue into several land compensation judgments, the largest being $16 million. Each land compensation case accrues interest on a daily basis. According to House Ways and Means Committee chair Rep. Angel A. Demapan (R-Saipan), the Legislature has appropriated over $116 million for outstanding obligations in land compensation, judgments, retiree benefits, and to the Public School System and the Commonwealth Healthcare Corp.
“These numbers outline the CNMI’s economic growth in the past decade, particularly since 2015, and supports the governor and our community’s goal to be both financially prudent and secure,” the statement added.
“We’ve done a lot together as a community, but we are cognizant that there are still a lot of challenges. The governor and his administration will continue to pursue policies and initiatives that help maintain our economic viability so that we can bring down the debt even further for the next generations and create more opportunities for families now,” concluded the statement.
