Puerto Rico yesterday presented a budget proposal of $10.7 billion for fiscal year 2022 — about $700 million more than the federally-appointed oversight board is recommending, Bloomberg News reported. Governor Pedro Pierluisi called his spending plan “realistic” and necessary to jump-start the economy of the bankrupt U.S. territory. He said the additional costs will be more than covered by surplus tax revenue and additional federal aid that the board had not built into its projections. The Fiscal Oversight and Management Board, or FOMB, has the final say in Puerto Rico’s budget. For fiscal 2021, the panel approved a $10.05 billion spending plan versus the $10.2 billion proposal presented by then-Governor Wanda Vazquez. Retirement costs will continue to take up a large portion of the island’s resources, as its pension system is broke and all payments to retirees must come from the general fund. Pierluisi’s budget allocates $2.1 billion to cover pension payments in fiscal 2022, similar to what the commonwealth paid this fiscal year. In addition, the budget allocates $2.8 billion for payroll, $5.2 billion for operational expenses and $535 million for capital expenses.
