Governor Pedro Pierluisi warned today that the island’s next budget will not meet the certified tax plan.
The Governor’s statements emerged at the twenty-fourth meeting of the Fiscal Control Board (JCF) discussing the tax measures the government has yet to take to meet the tax targets imposed by the federal entity.
The president explained that the central government tax plan has not been revised since May 2020, so this version does not take into account the federal funds the country received in response to the earthquakes and the COVID-19 pandemic.
“I warn you that because the Fiscal Plan has not been revised, we have to live with the current revenue base and that it constrains the government in order to present a budget that is real and that guarantees a functioning government,” said Pierluisi. during his first performance at a JCF meeting.
“So next Tuesday you will see a budget that may not be fully in line with the budget plan,” he added.
The central government has until February 2 to present the budget for the next financial year. While February 20 is the deadline for a new tax plan.
Likewise, the director of the board, Justin Peterson, again expressed concern about the projections of the country’s collections. In addition, he asks the board about the reasons for underestimating the income the island receives annually. According to Peterson, the fiscal forecast presented in January reflected that the board of directors underestimated revenues from the island, where it expected revenues of $ 8,100 million. However, he argued that the island brought in about $ 9.2 billion.
“That has so many consequences because it gives the Puerto Rico government less flexibility … We’re not going to grow the Puerto Rico economy if we keep ordering cuts. We need to focus on growth and investment. Ask the McKinsey company what it is. : their plan to realize more realistic projections, ”Peterson wondered.
In a brief exchange of views, Natalie Jaresko, Executive Director of the Council, defended the projections proposed by the tax entity and assured that McKinsey is not the only company providing income estimates.
Board rejects allocation of funds for improvements at Aguadilla airport
Pierluisi, for his part, thundered against the Junta for rejecting a request from the central government for funds to repair the runway at Aguadilla airport.
According to the rescheduling request, the cost of rebuilding the runway is $ 29 million. However, Natalie Jaresko, executive director of the board, said the request was denied because the government had asked to use funds from the matching program to fund projects approved by the Federal Emergency Management Agency (FEMA, for its acronym ). In English) .
“We need to fix that airport and we need to reopen it soon. Projects like this are crucial and cannot be just a yes or no. Help the government of Puerto Rico,” said Pierluisi, who also told the Federal Aviation Agency (FAA) He asked them to identify a match with federal funds to fund the airport’s schemes. “They asked us for that game because they don’t trust Puerto Rico because of the tax disorder,” he added.
While Jaresko stated that these funds are for investing in projects described by FEMA. “The funds in that account are intended to allow the government of Puerto Rico to meet the 10% match of federal funds for projects approved by FEMA,” Jaresko said. In this way, the official indicated that the government of Puerto Rico must identify another source of income to pay for that work.
After the brief exchange between Jaresko and Pierluisi, Peterson supported the Governor’s allegations and questioned the prosecution’s reasons for excluding this project.
“Decisions like this make me question my role in this Council. I am here to promote economic growth. I am disappointed with this determination,” said Peterson.