OGP issues new budget guidelines for FY 2026-2027

By THE STAR STAFF

The director of the Office of Management and Budget (OGP), Orlando C. Rivera Berríos, announced the issuance of the Annual Budget Letter for Fiscal Year 2026-2027 (FY2027), which establishes the guidelines, parameters and priorities that will govern the preparation of the budget of the Government of Puerto Rico for fiscal year 2027.

“Our goal is to build a forward-looking budget, aligned with the Government’s strategic priorities and based on fiscal responsibility, ensuring the efficient use of public resources and the continuity of essential services for our citizens. This change represents a firm step toward greater fiscal stability and sustainability for Puerto Rico,” Rivera Berríos said in a written statement.

“With these guidelines, we are inaugurating a new budgetary approach focused on efficiency, transparency, and results. The OGP will continue to support each agency through technical assistance and budget consultations to ensure that this process contributes to the well-being of all Puerto Ricans,” he added.

“One of the objectives of our Strategic Plan is to develop the budget process for Fiscal Year (FY) 2027 under a multi-year vision that seeks to strengthen medium and long-term planning, based on: fiscal responsibility, multi-year projections, data-driven justifications, identification of fiscal risks, separation of recurring and non-recurring expenses, focus on results and performance indicators, and fiscal neutrality,” explained the OGP director.

Agencies will receive their base budget and will be required to reduce operational expenses by 5 percent, particularly professional and purchased services, and must justify any payroll surpluses. All additional requests must be justified, documented, and aligned with expected results. The budget policy for FY 2027 will not accept budget requests that are not properly justified and documented.

The budgetary priorities of Governor Jennifer Aydin González’s Government Program include, in the area of health, expanding services to the elderly population; in the area of public safety, having trained personnel, adequate equipment and optimal facilities to improve the efficiency of emergency response; in infrastructure, developing mechanisms to efficiently execute infrastructure projects and prioritizing initiatives with the highest return on investment.

Regarding public service, promote competitive salaries, structured training processes, and a special projects program that allows employees to develop new skills and receive additional compensation.

In the area of education, for the first time, the Department of Education’s budget will be formulated using a weighted formula based on student needs, allowing for greater equity and clarity in investment per school. In tax policy, the priority is to reduce the tax burden responsibly, adhering to the principle of fiscal neutrality.