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Follow the budget

Who prepares, certifies, administers, and reports on public money.

09 / 106 min read

Start with the responsible institution

Several institutions work on public finances. Their responsibilities overlap in places, but the names are not interchangeable.

Institution Its part in the work
Departamento de Hacienda Administers state taxes and collections and has central treasury, accounting, and financial-reporting duties.
Oficina de Gerencia y Presupuesto — OGP Helps the governor prepare the executive budget, analyzes agency requests, and monitors budget execution.
AAFAF Serves as fiscal agent and financial adviser, coordinates debt matters, and acts as a government liaison with the Oversight Board.
Financial Oversight and Management Board Exercises the fiscal-plan, budget-review, and certification powers established by PROMESA.

These distinctions come from Hacienda’s accounting statute, arts. 4–7, OGP’s enabling statute, arts. 2–3, AAFAF’s statute, art. 5, and PROMESA, §§201–202.

From a proposal to a certified budget

The governor proposes spending, with OGP’s preparation and financial information from other institutions. The Legislature has approval and appropriation responsibilities. Constitution art. IV, §4 describes the governor’s presentation of Treasury conditions and proposed spending.

PROMESA adds a specific process. The Board sets a schedule; the governor submits a proposed budget for its review; a compliant territorial proposal goes to the Legislature; and the Legislature’s adopted budget returns to the Board for review and certification. The law also provides corrective steps, including a Board-developed budget if a compliant one is not produced. A legislature-approved document and a Board certification are distinct acts. Covered instrumentalities can have their own budget procedures. PROMESA §202(c)–(e).

The Board is legally an entity within the territorial government, with a special position under federal law. It should not be drawn as an ordinary federal agency or a department subordinate to the governor. Its oversight links describe legal powers rather than general administrative membership. PROMESA §101(c).

Three different meanings of “plan”

  • A fiscal plan sets a multiyear fiscal framework under PROMESA §201.
  • A budget authorizes and organizes resources for the applicable fiscal period under the budget process.
  • A plan of adjustment addresses a debtor’s obligations in a Title III court proceeding. PROMESA gives the Board exclusive filing authority and makes it the debtor’s representative; the court considers confirmation under the statute.

AAFAF’s government negotiation role does not erase those distinct Board and court responsibilities. Approval of one document does not establish approval of the others. PROMESA §§201–202 and §§312–315; Act 2-2017, art. 8(q).

Authorization is not a payment

A budget figure is not automatically actual spending or a program outcome. An appropriation provides authorization; an obligation commits resources under the applicable rules; a disbursement is a payment. For example, an illustrative authorization of $100 does not establish that $100 has been paid or that a service has been delivered. Government Accounting Act, arts. 8–9.

Hacienda’s financial reports and AAFAF’s budget-to-actual and liquidity collections answer different questions. Available cash, authorized spending, and recorded results should not be treated as equivalent figures. Accounting Act, art. 5; AAFAF’s financial repository.

Read the scope before comparing totals

The official budget portal separates General Fund, special-revenue, federal-fund, and capital reports. Check the fiscal period, document version, funding source, expense category, and entities included before comparing totals. Tables organized by source and by use can describe the same money from different perspectives.

A fiscal line item is also not automatically a separate agency. Budget documents may group components or include funds, programs, and institutions being wound down. Use the directory’s identity and status records when counting institutions; use the budget’s stated scope when comparing money.

Check your understanding: Does an approved budget mean the money has already been spent?

No. Authorization, an obligation, and an actual payment are different stages. Compare the relevant execution and financial reports.

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