The Northern Marianas continues to be weighed down by a mountain of debt, and would fall about 30 million dollars short of budget forecasts this year, officials said Monday. The cash-strapped US territory has been struggling for more than a year because of slumps in the twin pillars of its economy - textiles and tourism.
Governor Benigno R. Fitial said the government could no longer sustain its 193.5 million dollar budget for 2007 because of falling revenues, with the tax-take shortfall alone estimated at 30 million dollars.
Northern Marianas Finance Secretary Eloy Inos said both corporate and personal tax were down due to the "accelerated closure of garment factories and the departure of affected non-resident workers. "Moreover, the continued weakness in the tourism industry has left tourism-related revenues stagnant with little or no growth to offset the decline."
Commerce Department data shows a 10 percent drop in business revenue to 1.83 billion dollars last year compared to 2005. Much of the decline was attributed to lower garment production following the World Trade Organisation's decision to liberalise the textile trade in 2005, and the slump in tourism since Japan Airlines axed its 14 weekly return flights the same year. This measure will continue through until September 21.
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