Puerto Rico instituting 5% department freezes

Puerto Rico’s government has frozen spending by departments at 5% less than allotted in the budget, in a bid to limit overall spending to what it believes to be necessary.

In the early months of his tenure as governor, Ricardo Rosselló said he was introducing “zero-based budgeting” whereby department heads would have to justify every government program and every dollar spent on programs. Puerto Rico chief financial officer Raúl Maldonado said the governor's administration has introduced the 5% program in the same spirit of careful spending.

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Robert SlavinPuerto Rico instituting 5% department freezes