Government of the Federated States of Micronesia

Nena proposes deletion of reference to Budget Office

PALIKIR, Pohnpei (FSM Information Service): March 20, 1998 – President Jacob Nena, on
March 11th, transmitted to Congress Speaker Jack Fritz, a proposed legislation, amending
section 203 of title 2 of the FSM Code, as amended, to delete the requirement that the
Budget Unit be contained in the Department of Finance and Administration.

The specific reference to the Budget Unit States, “which shall
contain among other units, a unit for the Budget”; is to be deleted if adopted by Congress.

Nena told Fritz that by deleting that language, he will be free to
transfer the Budget Unit or office from its present location in the Department of Finance
and Administration and relocate it in the Department of Economic Affairs by simply
amending the Presidential Order No. 1, as amended, to accomplish the proposed relocation
of the budget office.

The Deputy Secretary of the Department of Economic Affairs Patrick
Mackenzie was the former Director of Budget under the old organizational structure, an
independent office.

To relocate Budget Unit in the Department of Economic Affairs would
theoretically expand the department’s responsibilities and control over budgetary process
over other equivalent departments.