Puerto Rico has a $3.2 billion deficit in its $9.48 billion fiscal 2009 budget, which began July 1, and could face annual shortfalls of more than $3 billion over the next four years unless the government curbs spending or implements other financial initiatives, according to a fiscal advisory committee set up by Governor-elect Luis Fortuño.

The 14-member panel released its initial findings last week, with Fortuño pledging to end Puerto Rico's structural imbalance within four years through government downsizing and promoting business growth on the island. In November, the current administration announced a $2 billion budget deficit.

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