Third quarter Treasury report shows a shortfall in a number of revenue streams

Pago Pago, AMERICAN SAMOA — The American Samoa Government’s projection for revenue for the third quarter is short by $11.67 million for collections of tax revenue versus the actual collections. This is according to ASG’s third quarter Treasury report. 

Corporate tax projections for third quarter is $16.3 million however the actual revenue collected amounted to only $14.36 million with a shortage of $1.9 million; Individual tax projections is $27.53 million, while actuals is $25.40 million, leaving $2.13 million under budgeted; Excise taxes projected $23.2 million, actuals came in at $17.66 million leaving a $5.53 million deficit; excise taxes on soda are projected at $3 million and $2.05 was collected with a $949,163 shortfall; Military cover over had a $2million projection and $877,867 was the actual with $1.22 million short of revenues.

Also included in the 3rd quarter report was the assurance by Budget Director, Catherine Saelua that all three branches of government have operated within their 3rd quarter budget allocations, from April-June 2022.

Saelua’s letter was included in ASG’s third quarterly report for the current financial year 2021-2022, submitted to Governor Lemanu P.S Mauga and Fono leaders.

Dated August 15, Saelua points out that continued uncertainty persists within the global economy given the global conflicts as a result of the Russian/Ukraine war, constraints in supply chains, and high inflation that has increased the cost of food supply, energy, freight and import of various produces into our territory.

 “As the FED continues to raise interest rates in an effort to bring down inflation, some experts believe that this may potentially lead us into a recession.

 “And others are saying the increase in employment and positive reported corporate earnings with optimistic guidance are significant factors as to why a recession may not be in the cards.”

Saelua says that despite the global risks and not being immune from them, the local economy continues to be more resilient granted that it has benefited greatly by the influx of federal aid to the territory.

 “As a result our economy continues to sustain momentum and traction for the 3rd quarter, period ending 30 June 2022.

 “The preliminary YTD expenditures for the 3rd quarter totaled $92.4 million of the total budget of $122.8 million accounting for about 75 percent in pending levels.

 “This total includes the supplemental budget of $12.6 million in special programs. Given the current rate our general fund year-end projection will come in slightly lower than the approved annual budget.

 “Each and every agency and Department within the American Samoa Government must live within their means in order to achieve a balanced budget.”

According to Saelua in her letter the government in its entirety operated within their allocated budget.

 “The special program is above the 75 percent threshold but is hopefully projected to finish the year within budget.

 “Overall total YTD expenditures incurred of $92.4 million in the 3rd quarter is in line with the 75 percent threshold of the approved annual budget of $122.8 million leaving the remaining 25 percent to cover operating expenses for the 4th quarter.”

Saelua pointed out there are “slight variations” on the compiled data generated from their office.