DoF: Revenues up in Q1

Total general revenues for the first quarter of fiscal year 2005 totaled $47.3 million—about 10 percent higher compared with the same period last year.

Department of Finance data showed that from Oct. 1 to Dec. 31, 2004, it collected $39.9 million in taxes and $7.4 million in fees, services and other revenues.

During the same period in FY 2004, the government collected just $43.1 million—$37.5 million from taxes and $5.5 million from fees and other revenues.

High collection growth percentage in the first three months of FY 2005 were recorded for beautification tax at $655,000, or 23 percent up compared with FY 2004; hotel tax at $1.3 million, or 20 percent up; business gross revenue taxes at $12.5 million, or 18.80 percent up; and liquid fuel tax at $947,000, or 12.7 percent up.

In fees, the government registered increased percentage collection rate in “other revenues” totaling $518,000—79 percent up compared with the same period last fiscal year; and amusement machine licenses at $2.3 million, an increase of 44.6 percent.

Total operating resources for the first three months of the fiscal year totaled $49.5 million or over 10 percent more than the same period last fiscal year.

Minus a $1.905 million bond payment, the government’s total general appropriation for the first three months amounted to $47.6 million or about $5 million more than the same period in FY 2004.

Meantime, Gov. Juan N. Babauta has insisted that his FY 2004 revenue projections were accurate, noting that the shortfall was a mere .07 percent—not 7 percent as “inaccurately reported in the press.”

“That is 7/100 of a percent,” he said, maintaining that in FY2004, “we have once again succeeded in keeping expenditures in line with revenues and balanced budget.”

“We understand how to control spending and we have a reliable record of forecasting revenues,” he said.

He said that a balanced budget means that revenues received are at least equal to expenditures made in any given year.

He said that while the budget “has been balanced in the last two years,” the Commonwealth does have some $100 million debt accumulated since 1978.

The governor noted that the 2005 appropriation bill, House Bill 14-250, takes a step back in addressing the debt problem as it only set aside 1 percent—not 2 percent—of the budget to pay off the debt.

DoF data showed that the government had projected to generate $218.098 million for FY 2004; actual revenues only totaled $203.231 million.

The government collected only $168.3 million in total taxes in FY 2004; it had expected $187.4 million.

For fees, services, and other revenues, the government got $34.9 million, which is 13 percent higher than the estimated revenues for the period.

Finance Secretary Fermin Atalig said that the actual shortfall for total operating funds for FY 2004 was only less than 1 percent.

He said that of the general appropriation of $213.9 million—the sum of $226.1 million total operating resources minus $12.2 million bond payment—the actual revenues during the period reached $213.8 million.

The Finance chief projects that the government would be getting $20 million in additional revenues in FY2005 compared with FY 2004.

The Finance official said that based on the trend during the first two months of FY 2005, the government would realize $5 million in additional revenues every quarter.

The governor, who asked the Legislature for $226 million as its budget for FY 2005, vetoed last week the $217.7 million that the Legislature had approved.