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Do not fill this in! ===Public finances=== {{main|Puerto Rico government-debt crisis|Budget of the Government of Puerto Rico|public debt of Puerto Rico}} Puerto Rico has an [[operating budget]] of about U.S.$9.8 billion with expenses at about $10.4 billion, creating a structural deficit of $775 million (about 7.9% of the budget).<ref name="el-vocero-la-estadidad-es-uniforme">{{cite news |url=http://elvocero.com/la-estadidad-es-una-unica-uniforme-e-irreversible/ |title=La Estadidad es una, única, uniforme e irreversible |first=José |last=Castrodad |newspaper=[[El Vocero]] |date=7 April 2014 |access-date=8 April 2014 |archive-url=https://web.archive.org/web/20140409052840/http://elvocero.com/la-estadidad-es-una-unica-uniforme-e-irreversible/ |archive-date=9 April 2014 }}</ref> The practice of approving budgets with a structural deficit has been done for {{years ago|2000}} consecutive years starting in 2000. Throughout those years, including present time, all budgets contemplated issuing bonds to cover these projected deficits rather than making structural adjustments. This practice increased Puerto Rico's cumulative debt, as the government had already been issuing bonds [[Puerto Rico government budget balance|to balance its actual budget]] for four decades beginning in 1973.{{efn|Walsh (2013) "In each of the last six years, Puerto Rico sold hundreds of millions of dollars of new bonds just to meet payments on its older, outstanding bonds – a red flag. It also sold $2.5 billion worth of bonds to raise cash for its troubled pension system – a risky practice – and it sold still more long-term bonds to cover its yearly budget deficits."<ref>{{cite news |url=https://dealbook.nytimes.com/2013/10/07/worsening-debt-crisis-threatens-puerto-rico/ |title=Worsening Debt Crisis Threatens Puerto Rico |first=Mary |last=Walsh |newspaper=[[The New York Times]] |date=7 October 2013 |access-date=8 October 2013 |archive-date=2 November 2013 |archive-url=https://web.archive.org/web/20131102003355/http://dealbook.nytimes.com/2013/10/07/worsening-debt-crisis-threatens-puerto-rico/ |url-status=live }}</ref>}}<ref>{{cite news |url=http://www.elnuevodia.com/comopuertoricollegoatenercreditochatarra-1704621.html |title=¿Cómo Puerto Rico llegó a tener crédito chatarra? |newspaper=[[El Nuevo Día]] |date=4 February 2014 |access-date=2 March 2014 |language=es |archive-date=2 March 2014 |archive-url=https://web.archive.org/web/20140302003237/http://www.elnuevodia.com/comopuertoricollegoatenercreditochatarra-1704621.html }}</ref> [[File:Budget-of-the-government-of-puerto-rico-2012-percentage.png|thumb|upright=1.8|The 2012 Budget of the government of Puerto Rico]] Projected deficits added substantial burdens to an already indebted nation which accrued [[Public debt of Puerto Rico|a public debt]] of $71B or about 70% of Puerto Rico's gross domestic product. This sparked [[Puerto Rico government-debt crisis|an ongoing government-debt crisis]] after Puerto Rico's general obligation bonds were downgraded to speculative non-investment grade ("junk status") by three credit-rating agencies. In terms of financial control, almost 9.6%—or about $1.5 billion—of Puerto Rico's central government budget expenses for FY2014 is expected to be spent on debt service.{{efn|PRGDB "Financial Information and Operating Data Report to 18 October 2013" p. 142<ref name="gdb-report-2013">{{cite web |url=http://www.gdb-pur.com/spa/documents/commonwealthreport.pdf |title=Financial Information and Operating Data Report to October 18, 2013 |publisher=[[Puerto Rico Government Development Bank]] |date=18 October 2013 |access-date=4 March 2014 |archive-url=https://web.archive.org/web/20140422202646/http://www.gdb-pur.com/spa/documents/commonwealthreport.pdf |archive-date=22 April 2014 }}</ref>}} Harsher budget cuts are expected as Puerto Rico must now repay larger chunks of debts in the coming years.{{update inline|date=July 2016}} For practical reasons the budget is divided into two aspects: a "general budget" which comprises the assignments funded exclusively by the [[Department of Treasury of Puerto Rico]], and the "consolidated budget" which comprises the assignments funded by the general budget, by [[List of government-owned corporations of Puerto Rico|Puerto Rico's government-owned corporations]], by revenue expected from loans, by the sale of government bonds, by subsidies extended by the [[federal government of the United States]], and by other funds. Both budgets contrast each other drastically, with the consolidated budget being usually thrice the size of the general budget; currently $29B and $9.0B respectively. Almost one out of every four dollars in the consolidated budget comes from U.S. federal subsidies while government-owned corporations compose more than 31% of the consolidated budget. The critical aspects come from the sale of bonds, which comprise 7% of the consolidated budget – a ratio that increased annually due to the government's inability to prepare a balanced budget in addition to being incapable of generating enough income to cover all its expenses. In particular, the government-owned corporations add a heavy burden to the overall budget and public debt, as none is self-sufficient. For example, in FY2011 the government-owned corporations reported aggregated losses of more than $1.3B with the [[Puerto Rico Highways and Transportation Authority]] (PRHTA) reporting losses of $409M, the [[Puerto Rico Electric Power Authority]] (PREPA; the government monopoly that controls all electricity on the island) reporting losses of $272M, while the [[Puerto Rico Aqueducts and Sewers Authority]] (PRASA; the government monopoly that controls all water utilities on the island) reported losses of $112M.<ref>{{cite web |url=http://grupocne.org/2013/01/31/san-juan-2023-o-la-decadencia-de-un-pais/ |title=San Juan 2023 o la decadencia de un País |work=Centro Para Una Nueva Economía |publisher=Center for a New Economy |date=31 January 2013 |access-date=28 April 2014 |archive-date=29 April 2014 |archive-url=https://web.archive.org/web/20140429045551/http://grupocne.org/2013/01/31/san-juan-2023-o-la-decadencia-de-un-pais/ |url-status=live }}</ref> Losses by government-owned corporations have been defrayed through the issuance of bonds compounding more than 40% of Puerto Rico's entire public debt today.<ref>{{cite web |url=http://www2.pr.gov/presupuestos/presupuesto2011-2012/Resumen%20del%20Presupuesto/Servicio%20de%20la%20Deuda.pdf |title=SERVICIO DE LA DEUDA |website=".pr.gov |access-date=26 August 2017 |archive-url=https://web.archive.org/web/20170525014050/http://www2.pr.gov/presupuestos/presupuesto2011-2012/Resumen%20del%20Presupuesto/Servicio%20de%20la%20Deuda.pdf |archive-date=25 May 2017 }}</ref> Holistically, from FY2000–FY2010 Puerto Rico's debt grew at a [[compound annual growth rate]] (CAGR) of 9% while GDP remained stagnant.<ref>{{cite web |url=http://gdbpr.com/spa/investors_resources/documents/2011-07-12-DeudaPublicaDic2010-GS.pdf |title=Reporte General sobre Deuda Pública |website=".pr.gov |access-date=26 August 2017 |archive-url=https://web.archive.org/web/20170525013905/http://gdbpr.com/spa/investors_resources/documents/2011-07-12-DeudaPublicaDic2010-GS.pdf |archive-date=25 May 2017 }}</ref> This has not always provided a long-term solution. In early July 2017 for example, the PREPA power authority was effectively bankrupt after defaulting in a plan to restructure $9 billion in bond debt; the agency planned to seek Court protection.<ref>{{cite news |url=https://www.nytimes.com/2017/07/02/business/puerto-ricos-electric-power-authority-effectively-files-for-bankruptcy.html |archive-url=https://web.archive.org/web/20170703030726/https://www.nytimes.com/2017/07/02/business/puerto-ricos-electric-power-authority-effectively-files-for-bankruptcy.html |archive-date=2017-07-03 |url-access=subscription |url-status=live |title=Puerto Rico's Power Authority Effectively Files for Bankruptcy |first=Mary Williams |last=Walsh |date=2 July 2017 |access-date=26 August 2017 |website=[[The New York Times]]}}</ref> In terms of protocol, the governor, together with the [[Puerto Rico Office of Management and Budget]] (OGP in Spanish), formulates the budget he believes is required to operate all government branches for the ensuing fiscal year. He then submits this formulation as a budget request to the Puerto Rican legislature before 1 July, the date established by law as the beginning of Puerto Rico's fiscal year. While the constitution establishes that the request must be submitted "at the beginning of each regular session", the request is typically submitted during the first week of May as the regular sessions of the legislature begin in January and it would be impractical to submit a request so far in advance. Once submitted, the budget is then approved by the legislature, typically with amendments, through a [[joint resolution]] and is referred back to the governor for his approval. The governor then either approves it or vetoes it. If vetoed, the legislature can then either refer it back with amendments for the governor's approval or approve it without the governor's consent by two-thirds of the bodies of each chamber.<ref>{{cite web |url=http://www2.pr.gov/presupuestos/PresupuestoAprobado2013-2014/Informacin%20General/Proceso%20Presupuestario.pdf |title=PROCESO PRESUPUESTARIO |website=2.pr.gov |access-date=26 August 2017 |archive-url=https://web.archive.org/web/20170525014054/http://www2.pr.gov/presupuestos/PresupuestoAprobado2013-2014/Informacin%20General/Proceso%20Presupuestario.pdf |archive-date=25 May 2017 }}</ref> Once the budget is approved, the Department of Treasury disburses funds to the Office of Management and Budget which in turn disburses the funds to the respective agencies, while the [[Puerto Rico Government Development Bank]] (the government's intergovernmental bank) manages all related banking affairs including those related to the government-owned corporations. 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