8 Jul 2015

Concerns raised over American Samoa Government's books

12:33 pm on 8 July 2015

An American Samoan MP says he's concerned the government will not balance its books this financial year and the territory should take note of Puerto Rico's crisis.

Larry Sanitoa says he doubts the government will collect enough revenue to cover the last two quarters of the 2015 fiscal year, which ends on September the 30th.

He says the government is at a shortfall of $10 million US dollars for the first six months.

Mr Sanitoa says it's mostly due to shipping delays from the US West Coast ports.

He says recently-approved taxes and fee increases will temporarily help, but those moves may be counter-productive to any foreseeable economic growth, given the increases will be passed on to the consumer.

Puerto Rico is nearly bankrupt with the debt per capita put at thousands of dollars.

It is seeking assistance from Washington.