Puerto Rico Economic Pulse ©

April 2005: The Budget Blues

Analysis of public expenditures in PR

The same story as in 2002: the PR Government is short of money and is scratching all pockets across the island. Once again, the Government has decided to balance the fiscal equation by raising taxes. The authorities refuse to trim an already huge budget. The question still remaining is: will we eventually find a cure to the wounds of the public budget? In this issue, we address the other side of the equation and analyze the way the PR Government spends the taxes we pay and other resources. We will travel backwards in time to confront the real source of our fiscal woes.