The Office of Compact Management (OCM) announces that the Federated States of Micronesia FY 2006 budget has been approved. On September 15, the Joint Economic Management Committee (JEMCO) held a special teleconference in the FSM approving $79 million in FY2006 Compact allocations.
Over 30% of this year's funding will be used to support education. An additional 30% will fund high priority capital projects identified in the FSM's recently approved Infrastructure Development Plan.Funding levels for FY2006 for the six sectors covered by the Compace will be:
JEMCO also decided that carryover funds from FY 2004 Public Sector Capacity Building, totaling about $1.3 million, will be used to improve financial management and procurement systems, performance reporting, and economic monitoring. The FSM Office of Compact Management and the US Office of Insular Affairs will develop a detailed implementation plan for these funds by November 30, 2005.