Puerto Rico unveils 1st balanced budget in years
SAN JUAN, Puerto Rico — Puerto Rico’s governor has presented the first balanced budget in more than a decade, fulfilling a promise to cut spending at a time when the island’s economic problems have spread fear among US investors.
Gov. Alejandro Garcia Padilla yesterday proposed US$1.4 billion in cuts and adjustments by consolidating 25 government agencies and imposing an average eight per cent spending cut for most agencies, among other things. He also pledged US$775 million to pay off debt — US$525 million more than in last year’s budget.
The US$9.64 billion budget aims to strengthen and revive the economy as the US territory enters its eighth year in recession and struggles to reduce some US$73 billion in public debt.
Legislators will now debate the proposed budget, which needs to be approved before June 30.