Government of the Federated States of Micronesia

President Mori's Budget Priorities for FY2010

Palikir, POHNPEI (FSM Information Services): December 19, 2008 - On December 17th and 18th, members of all Departments, Offices and Agencies of the national government came together for a meeting on budget development for fiscal year 2010 hosted by the Office of Statistics, Budget & Economic Planning, Overseas Development Assistance and Compact Management (SBOC). On the first day of the meeting, the Director of SBOC, Mr. Fabian Nimea, reviewed and explained the President's Budget Priorities for FY 2010 as set forth by his budget call to all Departments and Offices on November 15th. The President explained that the budget for FY 2010 "will be one of restraint, and a transition from the budgetary growth of the most recent past given the need to take precautionary measures during this period of Compact funds decrement and looming global economic turmoil and financial crisis." He stated that "the reduction of our operational spending will be a response to a decrease in Compact funding, investment earnings, Business Gross Revenue takes, and fees paid by businesses in FY 2009 as a result of domestic as well as regional and global economic turbulences." The President plans on meeting these challenges through the implementation of his budget policy initiatives which are:

  1. Increase the revenue generating capacity of the Government;

  2. Restrain spending growth;

  3. Stimulate economic growth and macroeconomic stability with Compact infrastructure and other foreign aid grant mobilization and utilization with complementary support from domestic private sector;

  4. Promote key domestic priorities, such as direct national government intervention in working with the States to improve the education system with measureable performance, enhanced energy security, and improved primary and preventive healthcare;

  5. Promote a congenial environment for business development;

  6. Recognize indigenous entrepreneurship excellence and attract domestic and foreign investment;

  7. Reduce spending on non-essentials such as travel, wasteful energy consumption, and other consumption expenses to no less than 10%;

  8. Continue to set targets for trust fund investment and endowment over the next 3 years;

  9. Invest about 50% of carry-over local funds from prior year in areas that will help support state governments economic activities;

  10. Slow the unsustainable growth of fixed costs and personnel spending with sensible reforms such as instituting a pension program and reduction-in force; and

  11. Overhaul the personnel system to assure efficiency and effectiveness in the delivery of core public services.

President Mori's ultimate objective is to stabilize the economy and continue to develop its base to ensure its sustainability and increase self-reliance over the long term. The President said, "We are mandated to provide essential public services to our citizenry in a sustainable fashion." He ended his message by saying, "I believe we can work together in the preparation of a Budget that gives us clear targets to strive for and attain, provides essential government services both efficiently and cost-effectively, and one that our citizens and stakeholders deserve."


For further information on this release, please contact:

FSM Office of the President
Public Information: Press, Radio, Video
P.O Box 34
Palikir Station, Pohnpei, FM 96941
Tel.: (691) 320-2548/2092
Fax.: (691) 320-4356
e-mail: fsmpio@mail.fm
http://www.fsmpio.fm/