Guam's governor, Eddie Calvo, says the territory's government no longer has a deficit.
The Pacific Daily News reports the governor's communications director Troy Torres said the government has wiped more than 300 million US dollars in debt from its books.
Mr Torres says the Calvo administration created a cash-flow model that helped determine how much money was coming in and how it was being spent.
There was also a hiring and pay freeze in the public service as well as a number of other measures to control government spending.
In a weekly radio address, Governor Calvo announced the government will now be able to start paying out salary increases planned under the Camacho administration several years ago.
