Puerto Rico's public employees will be furloughed without pay for two days each month to reduce government spending, the director of the Office of Management and Budget, Luis Cruz Batista, announced Thursday.
One work day every two weeks will be eliminated for all public employees, except for police officers, teachers and corrections officials, Cruz Batista said.
The measure is expected to save the government $50 million.
This is the first of several measures the island's government is considering with an eye toward cutting the current budget by 15 percent, or $1.5 billion.
Other measures that may be announced in the coming days as the government outlines its budget include reducing the funds allocated to the University of Puerto Rico, among other public entities, by 20 percent.
Also, government contracts in certain sectors, especially in education, will be eliminated, subsidies of non-profit entities will be suspended and funds given to the island's 78 municipalities will be cut back.
Last week the legislature rejected a tax reform plan that proponents say would have raised revenues by $1.5 billion.
With an accumulated debt of $73 billion and having been in a recession for more than eight years, Puerto Rico does not have the ability to go to the financial markets for more loans. In addition, the government is having difficulties paying bondholders and may have to shut down in less than 90 days if it cannot somehow increase its available funds.
Puerto Rico to furlough government employees two days a month without pay
One work day every two weeks will be eliminated for all public employees, except for police officers, teachers and corrections officials, Cruz Batista said.
The measure is expected to save the government $50 million.
This is the first of several measures the island's government is considering with an eye toward cutting the current budget by 15 percent, or $1.5 billion.
Other measures that may be announced in the coming days as the government outlines its budget include reducing the funds allocated to the University of Puerto Rico, among other public entities, by 20 percent.
Also, government contracts in certain sectors, especially in education, will be eliminated, subsidies of non-profit entities will be suspended and funds given to the island's 78 municipalities will be cut back.
Last week the legislature rejected a tax reform plan that proponents say would have raised revenues by $1.5 billion.
With an accumulated debt of $73 billion and having been in a recession for more than eight years, Puerto Rico does not have the ability to go to the financial markets for more loans. In addition, the government is having difficulties paying bondholders and may have to shut down in less than 90 days if it cannot somehow increase its available funds.
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