8 Mar 2024

American Samoa government announces cost-cutting measures after revenue falls

10:12 am on 8 March 2024
Pago Pago, the capital of American Samoa.

Photo: 123rf

American Samoa's acting governor Laapui Talauega Ale has ordered cost containing measures to take effect immediately, as the government faces a budget deficit.

The measures include a freeze on hiring for new or vacant positions paid with local revenues, suspension of overtime funded with local money, and a ban on travel paid with local funds.

It also includes a freeze on reclassifications and promotions, and no purchasing of new vehicles.

The acting governor has written to treasurer Malemo Tausaga, and budget director Catherine Saelua, on the money worries.

He said the government's first quarter performance report revealed increased spending in several sectors, including contractual, materials and supplies, travel and personnel.

"Projections for increased spending in future quarters warn of the possibility of a year-end budget deficit," he wrote.

KHJ News reported last week the government spending for the first quarter of the 2024 financial year exceeded revenues by around US$8 million.

Actual revenues raised $36.5m, but expenditures totaled $44.5m.

Projected local revenues for the first quarter was $40.6m, but actual revenues collected totaled $31.3m, a shortfall of $9.4m.

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