APPENDIX VI APPENDIX VI transfer payments from the U. of S. constituted 21.4% Puerto Rico's Gross National Product 23.0% in 1982 and 22.6% in 1983. payments, in Of these transfer 59% were earned benefits. While federal assistance to Puerto Rico is higher than states, it iS not given 1981, to most unreasonably out of proportion, © Puerto Rico's per capita income and relative poverty. ernors' According to a study by the National GovAssociation in constituted the 1982, federal assistance largest single source of revenue for al] the states, If the staff of GAO relied on Federal by Expenditures State for FY 1983 for the table on page 39, would point out one glaring omission. a computer code error by DOD when information, stated Defense as $0, Million. Because of supplying procurement we contracts this are whereas actually they totalled $217 Defense earned benefits, procurement contracts, like may be a federal expenditure, but are not regarded as federal assistance. IV. “Economic Development Strategy", is an underlying premise in Page 39-40. the There Draft - Report: namely, that the U. S. has no economic development strategy for the territories, actions that 2000289 : the except for piecemeal such as Operation Bootstrap. economic development 82 We strategy believe of the