En Espacios Abiertos Since 2017 we have advocated for the publication of an official record or budget of fiscal expenditures by the Government of Puerto Rico. Just like it does: the federal government since the 70s, most US states, and the 38 countries that are part of the OECD (Organization for Economic Co-operation and Development). We strongly recommend that the publication of the report not be left to the discretion of the ruler in office, but that it be legislated as most states and DC have done so that its preparation and publication is a requirement and serves as an instrument in the annual process of discussion and approval of the budget.
In a situation of government credibility crisis like the one that Puerto Rico is currently experiencing, the creation and publication of the fiscal expenditure register is a tool that allows citizens to know what and how much money the Government is spending on. The collection and publication of tax expenditures facilitates compliance with the disclosure standards of "tax abatements" established by the "Governmental Accounting Standards Board" in the GASB 77 since 2015 for all governments and their instrumentalities when preparing their Audited Financial Reports.
In addition to knowing for sure how much the totality of tax expenditures in Puerto Rico amounts to and putting an end to speculation, other questions that must be addressed by the annual publication of an Official Register of all tax incentives (budget of tax expenditures) and its timely discussion are:
- What level of transparency do the internal analyzes of the Government have that make it possible to decide which fiscal expenses continue and which not? What evaluation methodologies are used?
- What is the scrutiny process and cost-benefit analysis of tax expenditures like?
- How do we know which tax expenditures have a greater social benefit for citizens instead of only benefiting those who have greater lobbying power from the great economic powers?
- What economic impact does the reduction in public spending have due to the elimination of certain tax expenditures?
- What class of taxpayer does the elimination of certain fiscal spending affect: the most privileged class or the most disadvantaged?