Kosrae launches reform measures to address fiscal crisis
Palikir, POHNPEI (FSM Information Service): August 8, 2007 - The State of Kosrae has launched reform measures to address the state's current financial problems and the projected budgetary shortfall in fiscal year 2008.
As of August 7 2007, four issues in the Kosrae State Adjustment Program have been addressed and they are:
The issues are part of the reform matrix established and agreed to by Leadership of Kosrae to resolve the State's current financial situation.
During a two-day conference in the latter part of May, the Leadership of the State of Kosrae had met to assess the state's financial situation and consider possible alternatives to address the situation.
The State had an estimated budgetary shortfall within the range of $ 2million for the Fiscal Year 2008.
Accepting the magnitude of the state's financial crisis the Leadership was resolved to reverse the deteriorating financial situation. It was the consensus of the leadership to pursue a combination of measures to meet the needed adjustment. The specific adjustment measures identified on the Expenditure Side would include:
Measures identified on the Revenue Side would include:
The Leadership accepted that the adjustment measures will entail a lot of pain and sacrifice. These measures, the leadership accepted, offered no alternatives.
The Leadership Conference included leaders and officials from the three branches, municipal leaders, representatives from the private sector, church and community members and Vice President Alik L. Alik representing the National Government.
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