Puerto Rico’s Treasury Department reported an income of $1,220,043 in net revenues for its general fund in May 2022. Compared to May 2021’s reported net income, this shows a $194,522 or a 13.75% decrease in general fund net revenues. However, compared to the central government’s fiscal plan projections, said revenues were $348,778 or 40% higher than expected.
As for the general fund’s net revenues reported for the fiscal year from July 2021 to May 2022, there was an income of $11,483,393; this is in comparison to the previous fiscal year, shows a $1.17 million or an 11.4% increase. Although both general taxes and property taxes have gone down in comparison to 2021’s fiscal year, we see a $988,065 or a 21% increment in revenues from total income taxes.
Sales and use tax revenues for May 2022 reached $272,138. Compared to May 2021’s sales and use tax revenues, there was an $8,969 or a 3.4% increase. Meanwhile, when compared to the government’s fiscal plan projections, the reported revenues for May 2022 show an even higher increase of 14.7%. To date, sales tax revenue for the accumulated fiscal year has reached $2.4 billion, which in comparison to 2021’s fiscal year, shows an 8.4% increase in acquired revenues. Moreover, when compared to the fiscal plan’s projections, there is an 8.9% higher revenue than projected.
On another hand, excise taxes for May 2022, when compared to revenues received in May 2021, decreased by 5.8%. However, when compared to the fiscal plan’s projections, revenues for May 2022 in excise taxes were 7.1% higher than expected. The accumulated excise taxes for the fiscal year also show a decrease when compared to that of 2021; in this case, the difference totaled 6.3% fewer revenues. Compared to the accumulated fiscal plan’s projection, the revenues received for the fiscal year in question were 2.7% higher.
Another source worth noticing is revenues generated from the Foreign Act 154. In May 2022, these revenues totaled $184,747, which signifies that around 14.5% less revenue was acquired compared to May 2021. When compared to the fiscal plan’s projection, said revenues were 4.9% higher. The accumulated foreign act 154 revenues for the fiscal year reached $1,465,419, meaning that, when compared to the previous fiscal year, there were 5.9% fewer revenues. Nonetheless, when compared to projections exhibited on the fiscal plan, revenues were 3.5% higher than expected.
In conclusion, the general increase in the general fund’s net income for May 2022, is not reflected in the main sources of income such as excise taxes and Foreign Act 154 revenues. These sources and many others are begging to see their revenue decrease. This could be an initial sign of Puerto Rico’s local economy headed toward a recession.