1Q gov’t revenues up 10%

Fueled by slight improvements in visitor arrival figures and the continued growth of the apparel manufacturing industry, government revenues increased by 10 percent from $52.241 million in fiscal year 1999 to $58.056 million this year.

Growth in this year’s first quarter government revenues resulted to a landmark reduction in outstanding budget deficit by $10 million, according to a report from the office of Gov. Pedro P. Tenorio.

The report said Capitol Hill intends to complement the stable growth of the local economy with the continued implementation of policies aimed at eliminating unwanted government spending.

Gov. Pedro P. Tenorio is determined to further reduce the deficit inherited from the previous administration. The budget deficit has been reduced to $70 million from $80 million due to savings from austerity measures during the last fiscal year.

Mr. Tenorio said his administration is looking at providing additional fund to essential services that include health and education, as well as other preventive-focused, community-based programs.

While the local economy promises slight growth, officials believe the increase will remain at a slow pace, thus, the need for more revenue-generating measures that would replenish depleting public coffers.

Mr. Tenorio said the Economic Revitalization and Economic Task Force has been trying to come up with mechanisms that would pump up government revenues.

“We already have our task force working on that. We are meeting with the members of the private sector and we are trying to come up with suggestions and recommendations as to what we can do to improve our resources for the succeeding fiscal years,” he said.

Citing the government’s need for more funds, the governor said there is an immediate need to install measures that would help increase revenues to enable the administration carry out various social programs.

Government efforts to further improve the local economy through revitalization being carried out by the governor’s economic recovery committee include a move by the Aviation Task Force and the Commonwealth Ports Authority to expand air service to the CNMI by encouraging foreign carriers to provide service to the islands.

The Saipan International Harbor has seen the visit of at least 12 U.S. Naval vessels last year and government officials expect more American military ships to call the port of Saipan this year.

The Commonwealth is also expected to expand its economic base through new foreign investments by participating in trade missions to different parts of Asia in coordination with the U.S. government.