SAN JUAN, Puerto Rico – Puerto Rico’s governor has announced new austerity measures to help reduce the island’s budget deficit.

Alejandro Garcia Padilla issued an executive order barring agencies from paying public employees for their accrued sick leave. He said Wednesday that workers should use accumulated sick days as vacation days.

Garcia also ordered the Management and Budget Office to cut all expenses by 30 per cent, including professional services and purchases of equipment and materials. The office will decide cuts per government agency.

Garcia says the actions are needed because the current budget approved by the previous administration overestimated Treasury Department revenues and excluded repayment of a bond-related debt.

The island’s legislative and judicial branches, along with the University of Puerto Rico and several other offices are exempt from the order.

Puerto Rico is emerging from a six-year recession and still has an unemployment rate higher than any US state at 14 per cent. The island also is trying to reduce its US$69 billion public debt and a US$1.2 billion deficit.

Garcia took office in January, stating that one of his priorities is to create jobs.