Fiscal Control Board Conditionally Approves Budget and Fiscal Plan (documents)
The Fiscal Control Board unanimously approved the Fiscal Plan for Puerto Rico proposed by Governor Ricardo Rosselló Nevares on March 13. They also approved the national budget, albeit under certain conditions.
Both approvals were sent today to the governor and the legislative leaders.
'This evening, we received an official communication from the Fiscal Oversight Board saying that they have proceeded to certify the budget and refer it to the Legislature. The decision was unanimous, and it's proof that the work done with the budget is consistent with the certified Fiscal Plan,' said Elías Sánchez, the governor's representative in the Board.
'This proves that Governor Ricardo Rosselló Nevares chose the correct path to reduce expenses and obtain governmental efficiencies, as well as in his decision to take on the payments to our pensioners. The decision made by the Fiscal Oversight Board confirms that the aggregate levels of expenditures are correct, and they have asked for a review, during the legislative process, of certain special discretionary allowances,' he added in a written statement.
In their decision, the Oversight Board noted that they understood that the governor's most recent budget proposal is in material compliance with the Puerto Rican government's certified fiscal plan, and that the aggregate levels of revenues and expenditures are consistent with those in the certified fiscal plan.
However, the Oversight Board remarked that they still had concerns about certain allotments in the Budget Resolutions, as well as questions about the implementation plans to reduce expenses, but that these should be resolved over the next few days.
As for the budget, the Board set June 19 as the deadline to correct and submit the amended budget to be certified according to PROMESA. If the Board approves it, the certification notice would be issued on June 26.
'We will continue working with the administration and its advisors over the next few days to resolve any pending issues. We hope the final budget will amend or eliminate certain discretionary expense allotments and include the necessary changes to the plans to reduce expenses. This will ensure that the budget will perfectly align with the certified fiscal plan, and that the Board will be able to issue a compliance certification according to PROMESA, as soon as possible,' stated José B. Carrión, chairman of the Board.
Meanwhile, Sánchez assured that Rosselló's administration is prepared to 'complete the legislative process and have an approved budget in compliance with PROMESA. Puerto Rico now has a government that knows what it has to do, proving on a daily basis that it is capable of meeting the highest administrative standards.'
See the Documents.
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