Friday, June 23, 2017

Gov’t to present budget by oversight board deadline

By on April 20, 2017

SAN JUAN – The Puerto Rican government will comply with the April 30 deadline and present its draft budget for fiscal year 2018 to the fiscal control board, assured Elías Sánchez, the government’s representative to the entity created by the federal Promesa law.

A revised liquidity plan with “specific data” that states that by June 30 there will be a $200 million cash reserve to avoid cutting public employee workdays will also be presented that day.

Elías Sánchez, the government's representative before the Fiscal Oversight & Management Board created by the federal Promesa law, warned that if the government doesn't present a draft for the FY 2017-18 budget, there will be a workday reduction for public employees. (File Photo)

Elías Sánchez, the government’s representative to the Financial Oversight & Management Board created by the federal Promesa law, warned that if the government doesn’t present a draft for the FY 2017-18 budget, there will be a workday reduction for public employees. (CB photo)

“It is the first milestone contained in the fiscal plan. You will remember that it is the first contingency. If the government of Puerto Rico, as of April 30, does not meet these three requirements, a workday reduction come into effect June 30,” Sánchez told Caribbean Business after his participation in the P3 Summit.

As for the $200 million reserve, the representative before the board explained that “we don’t need to have the reserve in cash” by April 30. “What we must demonstrate to the board is that it is visible through the liquidity plan so they can see we will have it by June 30,” he added.

As part of the fiscal plan’s certification, the board proposed a workday reduction in the public sector to come into effect June 30, as well as the elimination of this year’s Christmas bonus.

If the local Treasury were to have the $200 million reserve by June 30, the board will suspend the workday reduction. Further ahead, in September, the fiscal entity will review the government’s liquidity once again and determine if it will reduce workdays and eliminate the Christmas bonus.

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