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Treasury reports ASG is on track to meet revenue projections

Based on a new “preliminary and unaudited”  ASG financial report, the Treasury Department says the government is on track to meet revenue projections at the end of the second quarter of fiscal year 2014, despite lack of confidence from some lawmakers.

 

The new financial report, covering Oct. 1, 2013 to Mar. 18, 2014 was based on a request by the Senate Budget and Appropriations Committee whose chairman, Sen. Laolagi F.S. Vaeao, sought the most up-to-date report on revenue versus expenditures and not just for the FY 2014 first quarter - Oct. 1 to Dec. 31, 2013. Senators also asked to see the financial status of ASG before the close of the 2nd quarter, which ends Mar. 31.

 

A revenue collection report was given to the Senate committee last week while expenditures were presented early this week.

 

As of Mar. 18, “revenues collected are  $42,803,006.40 (or $42.80 million) in comparison with expenditures at $40,724,325.74 (or $40.72 million),” ASG Treasurer Dr. Falema’o ‘Phil’ M. Pili wrote in a letter to Laolagi.

 

During a very short committee hearing Tuesday, senators accepted the financial reports, after it was made clear by the Treasurer that the government is doing well so far in revenue collection, which is above expenditures.

 

Of total expenditures, $32.93 million was spent by ASG departments and offices, while $8.42 million was spent under the Special Programs budget category, Pili told senators, adding that revenue collections are doing well and expected to meet 2nd quarter projections.

 

The Senate still plans to conduct their own independent review of expenditures and if necessary will call another hearing. They will also use the latest reports to compare ASG’s financial records when the 2nd quarter officially ends.

 

REVENUE COLLECTION

 

As of Mar. 18, revenue collection for corporate taxes have reached $8.53 million, while $17.70 is budgeted for the entire FY 2014, according to the Treasury report, which also says that “actual revenues for corporate taxes are averaging over $3 million per quarter”.

 

Treasury anticipates the last two quarters of FY 2014 “to increase significantly as increased audit activities at the Tax Office continue to move forward,” it says. “It appears we will come in at 20% over budget [at the end of FY 2014 for Corporate Taxes].”

 

For Individual Taxes, forecasted to collect $25.11 in FY 2014, the report says Tax Office has so far collected $8.07 million and the collection dropped slightly due to tax refunds issued, totaling over $3 million, but it will start to increase in the 3rd and 4th quarters.

 

The Excise Tax for Soda is budgeted at $2.5 million for FY 2014, and ASG has collected $1.02 million. Treasury says collection will continue for the last two quarters of the fiscal year.

 

Collection will also continue in the last two quarters for Excise Tax — All Others, which is forecast to rake in $25.05 million in the fiscal year, and has so far collected $10.60 million.

 

Overall, ASG projected to collected a total of $71.86 million in taxes — which are the government's largest revenue source — and as of Mar. 18, has raked in $28.39 million, according to the Treasury report, which also says that the government is “on target” to collect in the rest of the fiscal year revenues for ‘license & permits’, ‘fees & fines’, sports complex and other income.

 

It also says that ASG is expected to collect more than budgeted for “rents & leases” which are forecasted to bring in $1.3 million. For port/wharfage activities — it is forecast to collect a total of $3.96 million — they have so far collected $1.13 million, with the last two quarters expected to increase.