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Chamber: $193M projection too big
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Posted on May 03 2006
Saipan Chamber of Commerce officials expressed doubts yesterday that the government would be able to collect $193.5 million in fiscal year 2007.
“It’s going to be far less than $193 million. I wish them luck,” said Chamber vice president Alex Sablan in an interview shortly after yesterday’s chamber meeting at AJ’s Restaurant.
He said the government should better poll the business community to know the real situation.
“Business is not doing good,” said Sablan, citing a 40-percent decline in sales by one major company, which he declined to identify.
“It’s a 40-percent decline. And it’s not because of lack of buyers but due to the economic conditions here. Imagine that,” he said.
Chamber president Charles V. Cepeda agreed that the $193 million projection for 2007 might not be realized.
“I suggest that the government look at the actual revenues,” Cepeda said.
He said that in his discussion with Chamber members, “sales are all down.”
He said that Pacific Trading Co. alone has registered a 30-percent decline in sales since January this year. Cepeda is the general manager of PTC, a wholesale dealer of wines, liquor, soda, and other beverages.
For his part, Finance Secretary Eloy Inos said that $193.5 million is the government’s “initial” estimate.
He said the administration is tracking the situation and would revise the budget if necessary.
“We are not dead set on $193 million at this point. That’s what we know as of today. But we’re tracking it and 30 days from now, we may amend it. So, it’s not set on stone. And so far, I have not seen anything that will improve the situation,” said Inos.
The Fitial administration submitted to the Legislature this week a $193.5-million budget for fiscal year 2007, some $5 million less than the current fiscal year’s revised budget of $198.5 million, and nearly $20 million lower than the last enacted operating budget of $213 million.
Gov. Benigno R. Fitial said he believes that the $193.5-million proposed budget “will be sufficient if managed accordingly to provide for essential public services, address our obligation to the Retirement Fund in a fiscally responsible manner, and fund an economic recovery plan.”
