It is the general belief that it is bad for a government to have a deficit or be shoulder-deep in debt. However, while it is “perfectly legitimate” for public administrations to have shortfalls and finance them with debt, what is dangerous is when the practice leads to unsustainability.
The Puerto Rico Electric Power Authority concluded its two-day bond issue Wednesday, selling $650 million in bonds, about 36 percent more than the original $475 million the government was looking to raise.
Net General Fund revenue totaled $776 million in December, representing an increase of $210 million when compared to the same month in 2010. The hike was attributed to a surge in motor vehicle excise tax collections, which Treasury Secretary Jesús Méndez said reflected the highest year-over-year percentage growth.
A Dow Jones/Factiva content provider since 2014
Subscribe to our Dollars & Sense podcast!
