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Gov’t excludes Puerto Rico board-proposed measures from info supporting fiscal plan

By on April 27, 2018

SAN JUAN – The director of Puerto Rico’s Fiscal Agency and Financial Advisory Authority (Aafaf by its Spanish acronym), Gerardo Portela, announced Friday that labor reform details, which the government proposed but then withdrew, were not included in the financial information supporting the fiscal plan presented to the island’s financial oversight board.

“The published information does not include an employment-at-will reform, changes to the Christmas bonus or a reduction of accrued vacation and sick leave, since these measures were ruled out by the administration,” Portela said in a statement in which he also announced the publication of the information on Aafaf’s website.

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However, he said the rest of the published information includes macroeconomic projections including inflation rate, changes in the gross national product and population change; the multiplier effect in the measures included in the government’s fiscal plan; and the impact of these measures on government spending and revenue.

The impact of federal funds for reconstruction and insurance payments related to the damage caused by hurricanes Irma and Maria are also included, as is the economic impact of the structural reforms proposed by the government such as earned-income tax credits, tax reform, the incentive code, energy reform and job creation programs.

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“However, the Aafaf insisted that the draft fiscal plan developed by the government meets the requirements of Promesa [federal law], while promoting fiscal responsibility in a manner consistent with the public policy of Governor Ricardo Rosselló Nevares,” the official said.

The government presented its fiscal plan to the board on April 5. On April 19, the oversight panel rejected the government’s proposal and certified its own version of the fiscal plan.

–CyberNews contributed to this report

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