Fiscal Situation Update: Fiscal Year 2008 Review

Fiscal Situation Update: Fiscal Year 2008 Review

Published on September 27, 2008

Center for a New Economy

I. A preliminary look at the fiscal 2007-08 balance

About a month ago the Puerto Rico Treasury Department released the preliminary revenue figures for fiscal year 2008. General fund net revenues totaled $8.252 billion, which is $610 million, or 6.88 percent, less than the $8.862 billion collected during the previous fiscal year.

If we compare the actual revenues received with the originally budgeted amount, we find that general fund net revenues fell $825 million, or 9.09 percent, short of the initially expected amount of $9.077 billion. This original revenue estimate, however, was revised in March 2008. At that time, the Treasury announced it expected net general fund revenues to come in at the level of $8.671 billion. Still, actual receipts were $419 million, or 4.83 percent, below the revised forecast and even the adjusted projections were missed.