Wednesday, March 22, 2023

Puerto Rico Treasury: General Fund Revenue Exceeds Projections

By on July 29, 2021

The Puerto Rico Treasury Department in San Juan (ESM/CB)

SAN JUAN – Puerto Rico Treasury Secretary Francisco Parés Alicea announced Thursday that net income to the island’s General Fund totaled nearly $1.42 billion in May.

“Last May, revenues amounted to [$1.42 billion] and when compared with the estimated [$1.37 billion], we reached and exceeded the amount collected by $42.9 million, or 3.1 percent. This projection is part of the new Fiscal Plan certified by the Fiscal Oversight Board, on April 23, 2021,” the secretary said.

Parés pointed out that the main revenue line items in May “reflected a high level of adjustment with respect to the projection for the month,” reads his department’s press release.
“Among the sectors that exceeded what was projected are the income taxes of individuals, which exceeded the estimate by $15.1 million; the Sales and Use Tax [IVU by its Spanish acronym], at $11.8 million; excise taxes on shipments, by $16.3 million; and foreign entities, by $35.3 million,” Parés said.

On the other hand, the “Withheld from non-resident” category did not reach the projected $50.5 million with only $33.8 million collected, or $16.9 million less. Meanwhile, the $359.8 million in corporate income was $28.8 million less than the projected $388.6 million.

July to May Period

During the accumulated period through May, revenues to the General Fund totaled $10.31 billion, which when compared with the estimated $10.2 billion, represents an additional $117 million, Treasury said.

“For the fiscal 2019-2020 period, the accumulated income as of May totaled [$8.55 billion], while that collected during fiscal 2020-2021 exceeded that level of income by $1,760.8 million, an increase of 20.6 percent between one period and another,” Treasury said.

Accumulated July to May revenue in the “Others” category “was exceeded by $140 million compared to the projections”; however, that “of ‘Corporations’ represented an insufficiency of $132 million,” the agency pointed out.

“It should be recalled that in mid-March 2020, a state of emergency was declared by Executive Order[1], given the threat of a global pandemic by COVID-19 and May revenues were adversely affected,” Treasury said.

Parés, who is also Puerto Rico’s chief financial officer, was “optimistic about” May’s results and anticipated positive numbers for June, his department said.

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