Governor Pedro Pierluisi Urrutia has warned today that the island’s next budget will not comply with the Certified Fiscal Plan.
The governor’s remarks arose during the twenty-fourth meeting of the Fiscal Control Board (JCF) at which the fiscal measures that the government has yet to implement to meet the fiscal goals imposed by the federal body were discussed. .
The president explained that the Fiscal Plan for the central government has not been revised since May 2020, so this version did not take into account the federal funds received by the country in response to earthquakes and the pandemic of the COVID-19.
“I am warning that, due to the fact that the fiscal plan has not been revised, we have to live with the current income base and this limits the government to be able to present a budget that is real and guarantees a functional government,” he said. point out Pierluisi during his first appearance at a JCF meeting.
“So next Tuesday, you will see a budget that may not be fully consistent with the Fiscal Plan,” he added.
The central government has until next February 2 to present the budget for the next fiscal year. While February 20 is the deadline for a new Fiscal Plan.
Also, Board Director Justin Peterson again expressed concern about the country’s precautionary projections. He also questioned the Board’s reasons for underestimating the revenue the island receives each year. According to Peterson, the fiscal forecast presented in January reflected that the Board underestimated the island’s revenue where $ 8.1 billion in projections were projected. However, he argued that the island raised about $ 9.2 billion.
“This has so many repercussions because it gives the Puerto Rican government less flexibility … We will not make Puerto Rico’s economy grow if we continue to order budget cuts. We need to focus on growth and investment. I would like to ask- he asks the McKinsey company what their plan is to achieve more realistic projections, “Peterson questioned.
In a brief exchange, Natalie Jaresko, executive director of the Board, defended the projections proposed by the tax entity and has assured that McKinsey is not the only company that provides revenue estimates.
Board rejects allocation of funds for improvements at Aguadilla airport
For his part, Pierluisi thundered against the Board for rejecting a request from the central government to reschedule funds to repair the runway at Aguadilla Airport.
According to the rescheduling request, the cost to rebuild this track amounts to $ 29 million. However, Natalie Jaresko, executive director of the Board, mentioned that the request was rejected because the government asked to use funds from the pareo program aimed at funding projects approved by the Federal Agency for the Management of ‘Emergencies (FEMA, for its acronym in English).
“We need to fix this airport and we need to reopen it soon. These kinds of projects are critical and it can’t just be a yes or a no. Help the Puerto Rican government,” said Pierluisi, who also said that the Federal Aviation Agency (FAA) asked them to identify a pareo with federal funds to fund the arrangements at the airport. “We were asked for this pareo because they don’t trust Puerto Rico because of the fiscal mess,” he added.
While Jaresko raised that these funds are intended for the investment of projects outlined by FEMA. “The funds in this account are intended for the Puerto Rican government to meet the 10% pareo of federal funds for FEMA-approved projects,” Jaresko said. Thus, the official indicated that the Puerto Rican government must identify another source of revenue to pay for this work.
After the brief exchange between Jaresko and Pierluisi, Peterson supported the governor’s claims and questioned the prosecutor’s reasons for ruling out the bill.
“This kind of decision makes me question my role on this Board. I am here to promote economic growth. I am disappointed with that determination,” Peterson mentioned.