SECTION
FINANCE OF THE TERRITORY
tion,

a

PUBLIC FINANCE

The costs of Trust Territory opera-

Rions are met by funds granted by the
Congress of the United States and

Rrom

local

reimbursable

communications,

water

and

power resources.

Chapter f

revenue

RO Ge CHONS.

[rust Territory appropriation requests are subject to appropriation
ceding legislation the U.S. Congress

has enacted.

Fol 1962, a major shift in the direc-

Alion and scope of the Administering
PAuthority’s commitment in Micronesia
Flea te mcreased appropriations from
Bthe U.S. Congress to facilitate a more
Etapid pace of development. Accordinvly. the previous ceiling of $7.5
Million was raised to $17.5 million. An

accelerated program for emergency

Fconstiuction and staffing of school
f facilities was set in motion along with
: Ctloits to improve health standards
Band provide a general upgrading and
F mtiestated development of essential
Publi services embracing transporta-

Despite the impetus this program
has created during the past 6 years,
effective and realistic development
required further increases in the ceiling
to meet the needs of the people of
Micronesia. In 1967, new ceiling legislation authorizing $25 million for
1967, and $35 million for 1968 and
1969, was signed into law.
Preparation of the annual Trust
Territory Government budget begins
well over a year in advance when
district administrators and various
department heads submit estimates to
the Director of Budget and Finance.
After screening and necessary modif!cation,

review

including

appropriate

Commissioners,

by

the

these

estimates are presented to the High
Commissioner. The Budget Officer and
his staff, using the final recommendations approved by the High Commissioner, then draw up a preliminary
budget plan for the comingfiscal year.
In July this preliminary budget plan is
presented to the Congress of Micronesia for its review and recommendations with respect to such portions as
relate to funds to be appropriated by
37

Fiscal Year 1968

™;

Select target paragraph3