Governor warns about Fortuño’s proposal

On June 27, 2008, Primera Hora reported from Río Grande that Governor Aníbal Acevedo Vilá criticized New Progressive candidate Luis Fortuño’s proposal to cut more than $1,000 million from the government budget, for the blow it would — he said — deal to the private sector.

According to the governor, it is impossible to cut that amount without laying off between 20,000 and 30,000 public employees. He reiterated that his government had reduced the payroll by 17,000 posts, but acknowledged that salary spending held steady because of increases under Law 45. “If you throw 20,000 or 30,000 employees into the street, the cascade effect is going to have a negative effect on the private sector,” he said before the Chamber of Commerce.

He also proposed eliminating the state IVU and returning to the general 6.6% excise without exclusions — “which is what fosters tax evasion” — and insisted that accepting the IVU was a “titanic effort” to rescue the credit when it was on the brink of junk.

Campaign proposal / political warning ≠ approved budget or consummated layoffs. Credit “on the brink” ≠ adjudicated default.

Source: Primera Hora. https://www.primerahora.com/noticias/gobierno-politica/notas/gobernador-advierte-sobre-propuesta-de-fortuno/