According to the document Maria’s total cost reached $94 billion, housing $31.1 billion, Power Grid and utility resilience $17.8 billion to repair the damaged utility infrastructure of the Island, and Healthcare, $14.9 billion.
The Fiscal Plan assumes $57.2 billion in relief funds, $35.3 billion from FEMA, and $21.9 billion from the insurance companies, to be disbursed over the next five years.
Privatization and P3 has a significant role in the reconstruction process. The privation of PREPA is already a public policy priority in this plan.
The government recognize the importance of the structural reforms to improve the business environment and a precondition to stimulate the economy.
Based on the recovery funds, according the economic projections included in the Fiscal Plan during FY 2018, GNP will have a contraction of -11.2%, during FY 2019, GNP will reach positive ground of 7.6%. During FY 2020 and 2021, GNP is expected to grow by 2.4% and 1.8%, respectively.
Inflation is expected to increase to 2.1% in FY 2018, but it will remain stable in the range of 1.4% to 1.6% during 2019 and 2022.
Recovery funds deployed in into the local economy are expected to reach $11.6 billion in fiscal year 2018, $10.4 billion in FY 2019, $9.9 billion in FY 2020, $7.6 billion and $6.1 billion in FY 2021 and 2022, respectively.
The Fiscal Plan assumes that emigration will increase during the next five years. For instance, during FY 2018 the forecast projects a net emigration of 250,000 persons (-7%). By 2022, according to the document’s forecast, net emigration will reach 617,500. The Island’s population will descend to 2.7 million.
After all the Government structural reforms, Puerto Rico will have a funding gap of 3.4 billion though FY 2022.
The new Fiscal Plan does not provide funds for debt service for five years. The governor left that decision to the Judge Taylor Swain.
