American Samoa's governor has told cabinet directors that the 10 percent across the board reduction in local revenue for all government entities made earlier this year will help balance the books for government.
Lolo Matalasi Moliga imposed the reduction shortly after he became the governor in January, when it was learned that the government was facing some serious financial woes.
The reduction applies for the executive branch only, but is not enforced for the other two branches of government.
During last Fridays cabinet meeting, Lolo said some directors have questioned why the department has had 10 percent of their budget withheld or reduced.
"Now we were facing an overrun of almost 6 million US dollars but that ten percent comes in handy at the close of the fiscal year into balancing the books but also to give us the leverage to operate at the close of the fiscal year."
Lolo Matalasi Moliga.