Budget of the Government of Puerto Rico

This proposal is established by Article IV of the Constitution of Puerto Rico and is presented in two forms:[1][2][3][4][5][6] For practical reasons the budget is divided into two aspects: a "general budget" which comprises the assignments funded exclusively by the Department of Treasury of Puerto Rico, and the "consolidated budget" which comprises the assignments funded by the general budget, by Puerto Rico's government-owned corporations, by revenue expected from loans, by the sale of government bonds, by subsidies extended by the federal government of the United States, and by other funds.

The critical aspects come from the sale of bonds, which comprise 7% of the consolidated budget; a ratio that increased annually due to the government's inability to prepare a balanced budget in addition to being incapable of generating enough income to cover all its expenses.

In particular, the government-owned corporations add a heavy burden to the overall budget and public debt as not a single one is self-sufficient, all of them carrying extremely inefficient operations.

[8] All these losses were defrayed through the issuance of bonds compounding more than 40% of Puerto Rico's entire public debt today.

[9] Holistically, from FY2000–FY2010 Puerto Rico's debt grew at a compound annual growth rate (CAGR) of 9% while GDP remained stagnant.