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JEMCO approves national FY 2006 budget

Palikir, POHNPEI(Office of Compact Management/FSM Information Service): September 23, 2005 - The Office of Compact Management (OCM) announces that the Federated States of Micronesia FY 2006 budget has been approved.

On September 15, the Joint Economic Management Committee (JEMCO) held a special teleconference in the FSM approving $79 million in FY2006 Compact allocations.

Over 30% of this year's funding will be used to support education. An additional 30% will fund high priority capital projects identified in the FSM's recently approved Infrastructure Development Plan.

Funding levels for FY2006 for the six sectors covered by the Compact will be:

$26,132,059 for Education
$24,335,718 for Infrastructure
$16,394,939 for Health
$6,175,914 for Public Sector Capacity Building
$4,039,163 for Private Sector Development
$2,137,452 for Environment.

JEMCO also decided that carryover funds from FY 2004 Public Sector Capacity Building, totaling about $1.3 million, will be used to improve financial management and procurement systems, performance reporting, and economic monitoring.

The FSM Office of Compact Management and the US Office of Insular Affairs will develop a detailed implementation plan for these funds by November 30, 2005.