Puerto Rico’s July Revenue Comes in $7.4 Million Above Forecast

Puerto Rico’s revenue collections for the first month of the fiscal year came in above budgeted estimates, a positive start after receipts came in below the island’s projections last year.
The commonwealth’s general fund revenue in July totaled $665.1 million, $7.4 million more than expected, with tax receipts on foreign manufacturers and business coming in better than anticipated, Treasury Secretary Juan Zaragoza said in a statement Monday. Revenue collections for July were $38.6 million more than a year earlier.
July revenue from sales and use taxes totaled $209.5 million, with $119.7 million going to repay sales-tax bonds, called Cofinas by their Spanish acronym, and about $90 million going to the general fund, according to Zaragoza.
Puerto Rico collected $9.7 billion of general-fund revenue in fiscal 2016, $117 million below budgeted estimates, as individual and corporate tax receipts lagged projections.

Puerto Rico’s July Revenue Comes in $7.4 Million Above Forecast

Comments

Post a Comment

Popular posts from this blog

Franklin Making Failed Puerto Rico Fund Disappear Through Merger

Image
Puerto Rico’s debt exchange isn’t the only security swap for investors burned by the island’s financial collapse. Franklin Resources Inc. plans to close the $147 million Double Tax-Free Income Fund, whose strategy of plowing more of its assets into Puerto Rico than any other municipal-bond fund turned it into one of the worst performers. After the fund shriveled when investors pulled out money, Franklin is asking those remaining to exchange their shares for a piece of the $8.3 billion High Yield Tax-Free Income Fund, which has far less exposure to the island. “It parallels the life cycle of Puerto Rico in the debt markets,” said Matt Fabian, a partner at Municipal Market Analytics, a research firm based in Concord, Massachusetts. “As the island becomes increasingly insolvent, investing strategies dependent on the island also become insolvent.” U.S. mutual funds for years were eager buyers of the Caribbean territory’s debt, which is tax-exempt everywhere in the nation and provided ...
Read more

Bankruptcy is wrong for Puerto Rico

Treasury Secretary Jack Lew recently visited Puerto Rico in an effort to show the administration’s support for the beleaguered territory. Lew’s comments on his trip to San Juan and his January 15 letter to House Speaker Paul Ryan (R-Wis.) make it clear that when it comes to Puerto Rico, the administration largely equates “support”  with “bankruptcy.”  The administration’s well-intentioned desire to help the people of Puerto Rico is laudable, but it is a mistake to give Puerto Rico the power to rewrite its laws and contracts through a retroactive application of new bankruptcy laws. The administration’s position is neither good policy for Puerto Rico nor the United States.  Ambac is one of the country’s largest guarantors of municipal and state debt.  In Puerto Rico, we insure well over $2 billion of the Commonwealth’s various debt obligations, and our commitments to the island extend until the year 2054.  Our financial support of the Commonwealth helped build i...
Read more

Hatch objects to passage of S.1774, Puerto Rico Chapter 9 Uniformity Act | Senate Democrats

Senator Schumer asked unanimous consent that the Senate take up and pass S.1774 , Puerto Rico Chapter 9 Uniformity Act of 2015. Senator Hatch objected. Unofficial Transcript : SCHUMER: I AM GOING TO ASK FOR A UNANIMOUS CONSENT REQUEST BUT SPEAK FOR A COUPLE OF MINUTES AND ENGAGE IN SOME DISCUSSION WITH MY DEER FRIEND, THE SENIOR — MY DEAR FRIEND, THE SENIOR SENATOR FROM THE STATE OF UTAH. I WANT TO THAIPG HIM FOR COMING TO THE FLOOR TODAY ON THIS ISSUE. I’M — ON PUERTO RICO. I AM HEARTENED HE HAS EXPRESSED INTEREST IN WORKING WITH US TO GET DOES ON TO HELP OUR FELLOW CITIZENS IN PUERTO RICO. I ALSO WANT TO THANK MY FRIENDS, THE SENATORS FROM CONNECTICUT, NEW JERSEY, OREGON, WASHINGTON, ILLINOIS, AND MY COLLEAGUE FROM NEW YORK WHO IS HERE FOR THEIR STEADFAST SUPPORT FOR HELPING PUERTO RICO IN THIS TIME OF CRISIS. I RISE TODAY DEEPLY TROUBLED BY THE DIRE ECONOMIC, FINANCIAL, AND HEALTH CARE SITUATION IN PUERTO RICO. THE ISLAND IS FACING A FINANCIAL CRISIS, A HEALTH CARE ...
Read more