Puerto Rico Governor Bucks Deep Austerity in Recovery Plan
- Plan relies on cost-savings, overhauling corporate taxes
- Roadmap may herald a clash with federal oversight board
Puerto Rico Governor on Budget Gap, Creditor Negotiations
Puerto Rico Governor Ricardo Rossello released a plan to steady the island’s crumbling finances that depends largely on overhauling the tax system and squeezing cost savings from the government, seeking to avoid deep and swift budget cuts that he has said would deal a devastating blow to an already teetering economy.
The plan, which would cover less than half of its annual debt payments, is the first concrete sign of how the new governor expects to pull the commonwealth out of an unprecedented financial collapse. The blueprint, which will serve as a guide during negotiations with creditors seeking to wrest billions from the government, would need to be approved by the federal oversight board that was installed to end the crisis.