Palacios has no problem with no BGRT hike

As long as the CNMI government’s budget for fiscal year 2024 is balanced, Gov. Arnold I. Palacios has no problem with the Legislature passing a budget legislation that removes his proposal to increase the Business Gross Revenue Tax in order to raise an additional revenue of $9.1 million.

Speaking at a news briefing last week, Palacios said that, if the Legislature decides on another option rather than increasing the BGRT in the second quarter of fiscal year 2024, that’s certainly a legislative prerogative.

“I proposed the budget. That was my proposal to come up with a balanced budget to minimize the expenditure cuts,” he said.

Last Aug. 10, the House of Representatives passed a bill that proposes a $115.4-million budget for the CNMI government for fiscal year 2024. The legislation does not include the administration’s proposal to increase BGRT.

The Senate Fiscal Affairs Committee, chaired by Sen. Donald M. Manglona (Ind-Rota) has yet to file its version of the budget.

Palacios said it would have been easy to propose a budget without a proposal to increase the BGRT, but there would be “a lot of impacts on people’s life” such as 64 work hours for government employees rather than 72, and a cut in the insurance coverage for employees.

The governor said the Legislature may come up with a different proposal to cover the $9-million shortfall. (Ferdie de la Torre)

Arnold I. Palacios