Fiscal board approves version of general budget plan for FY 2021

By Yhe Star Staff

The Financial Oversight and Management Board for Puerto Rico on Thursday approved a proposed general fund budget for fiscal year (FY) 2021 for the commonwealth of Puerto Rico and submitted it to the island Legislature for its consideration.

The $10 billion proposed general fund budget for the Puerto Rico government’s day-to-day operations reflects the effect of the novel coronavirus pandemic on the economy, delays most rightsizing by one year to allow the government to focus on implementing the reforms necessary for Puerto Rico to recover, secures pensions, includes investments in health care and infrastructure to strengthen Puerto Rico, and introduces milestone budgeting to encourage real change on the island. Payroll freezes for the government and public entities remain largely in place, the oversight board said.

General fund expenditures are projected to increase from $9.6 billion in FY 2020 (inclusive of the $500 million additional expenditures from the March 2020 emergency measure support package) to $10 billion in FY 2021, mainly because of incremental investments in technology and public hospitals, and a reclassification of special revenue expenditures as general fund expenditures.

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