For the first three quarters of its fiscal year, Puerto Rico’s expenses are running below budget, according to the quarterly review released on Monday by the government’s Office of Management and Budget.
From July 2011 to March 2012, Puerto Rico’s expenditures totaled $6.19 billion, the review said. The fiscal 2012 budget provides for total expenditures of $9.26 billion.
“The administration has managed to maintain an effective control of its quarterly budget so that by the end of the fourth quarter, the government will not have spent more than what was budgeted for the year,” said Juan Pavía, executive director of the budget office. Between 2000 and 2008, expenses for the year regularly exceeded the spending plan, according to Pavía.
The quarterly budget review is a budget management tool that was implemented this year in order to monitor actual expenditures.
The new practice is a positive in terms of disclosure, but in itself is not a significant credit factor, said Standard & Poor’s analyst Horacio Aldrete-Sanchez.
According to an unaudited table of expenditures for the third quarter, positive operating results occurred in payroll expenses, purchased services, and donations and contributions.
Negative results occurred in expenses on transportation, advertising and the previous year’s payables.