eR Wr a MP cteet Sec SMTAAASolka - SECTION 1: FINANCE OF THE TERRITORY tion, Chapter 7 communications, water PUBLIC FINANCE The costs of Trust Territory operations are met by funds granted by the Congress of the United States and from local reimbursable revenue collections. Trust Territory appropriation §requests are subject to appropriation ceiling legislation the U.S. Congress has enacted. In 1962, a major shift in the direction and scope of the Administering Authority’s commitment in Micronesia led to increased appropriations from the U.S. Congress to facilitate a more rapid pace of development.. Accordingly, the previous ceiling of $7.5 million was raised to $17.5 million. An accelerated program for emergency ‘construction and staffing of school facilities was set in motion along with efforts to improve health standards and provide a general upgrading and integrated development of essential public 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, wassigned 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 modification, including review by the appropriate Commissioners, these estimates are presented to the High Commissioner. The Budget Officer and his staff, using the final recommenda- tions 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 recommenda- tions with respect to such portions as relate to funds to be appropriated by 37 Fiscal Year 1968 a aa and power resources. eer Se er RE aa WPT ‘ ES ae eo,