Budget will cover cash shortfall, economic development initiatives


Edition: April 25, 2013 | Volume: 41 | No: 15

At least $1.64 billion in new tax measures being considered to pay for it all; increased tariffs also on the horizon

Gov. Alejandro García Padilla is expected to present to the Legislature tonight a budget that aims to make up for shortfalls in government revenue and cover the cost of campaign pledges and new initiatives, including heightened efforts aimed at creating jobs and jumpstarting the stagnant economy.

A series of new tax measures will be implemented to pay for the bigger budget, but government officials insist they are keeping spending under control. The García Padilla administration proposals total $1.64 billion, but the Legislature is also proposing several other fee and tax hikes, which could push this figure up even higher.

Office of Management & Budget Executive Director Carlos Rivas Quiñones said the budget figure may have a “substantially higher dollar” amount than the current budget, but added that it would be “misleading” to assume the administration would be spending more money than this year. Rather, the budget will accurately reflect the government’s total liabilities, something that the budget inherited from the previous administration didn’t do, he said. READ MORE

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