BUDGET PROCESS OF PUERTO RICO

BUDGET PROCESS OF PUERTO RICO

The drafting of the Operation Expenditures and Permanent Improvements budget begins around 15 months prior to each fiscal year when the Office of Management and Budget (OMB) prepares the general, fiscal and program norms that must guide the agencies into the drafting of their budget requests. The budget process involves several governmental agencies, as well as the participation of all the units of the Office of Management and Budget. The budget process includes the following phases and activities:

PHASES AND ACTIVITIES	DURATION	RESPONSIBLE UNIT
Budget Onset	March to January of the following year
Planning and founding of fiscal and program norms for the budget process.	February to March	Director and OMB's Operation Area
Analyzes programs, proposals, economic and budgetary aspects of each governmental agency.	March to June	OMB's Operation Area
Executive meetings or administrative hearings with the agencies to discuss the budget proposal, as requested by Agency Chief	June to October	OMB with the agencies
Executive meetings between the Budget Director and Agencies Executive Directors to discuss their proposals, as requested by Agency Chief.	October to December	OMB with the agencies
Drafting of the General Fund and Special Funds revenue estimates, analysis of the public debt and the Government's borrowing margin.	December to January	OMB's Global Unity Processes Coordination, DOT, CRIM, and GDB
Drafting of the budgetary recommendations report for the Governor.	December to January	OMB's Operation Area
Administrative hearings with the Governor to discuss the budgetary proposals and recommendations .	January	Governor's Office, OMB, Planning Board, Governmental Agencies and Departments
Draft and submit to the Planning Board a summary of the operation expenditures and permanent improvements recommended budget to make sure it is in agreement with the Four Year Investment Plan.	December	OMB's Global Unit Processes Coordination
Drafting of the Budget Document which the Governor presents to the Legislative Assembly for its study and approval.	December to January	All OMB units
Draft preliminary law plans over budget assignments and the revision of the fiscal and budgetary legislation to implement the budget and authorize the bond issues and all related projects.	December to January	OMB's Operations Area
Delivery of Budget Document to the Legislative Assembly.	February	OMB's General Services Unit
Legislative revision and Approval of the Governor's Recommended Budget	February toMay
Assessment of the submitted budget.	February to May	Senate and Congress Commissions
Appearance before the Commissions to explain the budget and legislation under study.	February to May	Agencies and Departments, OMB's Managers and Director
Budget approval by the Governor The Governor signs the General Budget's Joint Resolutions and Special Resolutions to operations expenditures and permanent improvements which will go into effect on the first of July of each fiscal year, and all other budgetary laws.	May - June May to June
Budget Administration
July to June of each Fiscal Year	July	OMB's Operation Area
Authorization for the accounting and the use of special assignments for operation expenditures and permanent improvements, according to the established work plans.	July	OMB's Operation Area
Follow up and analyze agencies disbursements.	July to June	OMB's Operation Area
Investment assignments and permanent improvements control, requiring progress reports from agencies.	July to June	OMB's Operation Area