Oversight Board delineates principles for revised fiscal plan
The Financial Oversight and Management Board for Puerto Rico, during a hearing this week, focused on requisite policies and revision of fiscal plans and budgets, with emphasis on returning the economy of Puerto Rico to economic and fiscal health despite the extraordinary difficult circumstances.
“We are pressing forward to improve transparency and implementing our authorities under PROMESA ensuring that fiscal controls are established to help create more confidence throughout this process,” said Natalie Jaresko, Executive Director of the board. “The fiscal plan should prioritize structural reforms necessary to improve the business climate, providing a roadmap to turn the economy around while balancing the budget. Contract Review and Debt Review policies provide oversight over critical elements of the economy, boosting confidence that transactions are occurring in the best interest of Puerto Rico.”
“The amount of federal funding for rebuilding and its timing will be critical to determining the economic assumptions, projections and capital expenditure plans that will inform the revised Fiscal Plan,” added Jaresko. “We expect the revised plan to provide a framework for understanding how best to utilize these funds, and pair them with necessary fiscal and structural reforms to achieve the best possible outcome for the economy of Puerto Rico.” During the meeting, the Oversight Board presented an enhanced proposed FY18 budget review process and outlined key milestones and requirements for each milestone needed by the Central Government, as well as certain instrumentalities that also produce their own Fiscal Plans, including: PREPA, PRASA, UPR, HTA, GDB and COSSEC.