GAO: Marianas debt fell 2015-17

Northern Marianas public debt continued to decrease in 2016 and 2017, according to findings of the U.S. Government Accountability Office released on Friday. The GAO reports that due to the growing economy experienced in 2016 and 2017 the Commonwealth government decreased public debt from 16 to 8 percent of GDP. General revenues increased by 48 percent from 2015 to 2017, and government operated with a surplus. The report cautioned, however, that revenue reductions due to Typhoons Yutu and Mangkhut and pension liabilities pose financial risks. We all know the improved economic activity unfortunately does not continue – tourism is down, revenues have fallen, PSS personnel salaries were cut, and government hours are shortened. And while the report notes that the CNMI has not issued any new debt since 2007, that may end with reports this week of the Marianas Public Land Trust $15 million loan to the government. Congress required GAO to review the public debt of each of the five U.S. territories every two years in P.L. 114-187. GAO issued the first report in October 2017.