Puerto Rico Economic Pulse ©

May 2003: Is the Time Right for REITs in PR?

An investment tool that could cover shortfalls of fiscal revenues

Six months ago, the revenue shortfall in PR’s government budget was $41.2 million. Today, the potential fiscal deficit is $198.5 million for fiscal 2003. Is this because revenues were underestimated or because expenditures grew more than anticipated? The truth, as in most cases, lies somewhere in the middle. Find out the reasons and proposed measures to solve this challenging situation before fiscal 2003 ends. Increasing taxes may not be the right way, particularly taxes that affect the consumer who ends up paying them. Are there more creative ways than just raising taxes? REITs constitute a potential investment tool and a potential source of fiscal revenues.