Budget To Be Signed

Puerto Rican Governor Luis Fortuno is on the verge of signing the commonwealth's US$9.1bn 2011 budget as the island struggles to return its public finances to an even keel. With revenues still suffering from three years of recession, the budget focuses on more aggressive tax enforcement - particularly in the form of a property tax amnesty, which officials hope will lower the number of unregistered homes - and a crackdown on illegal slot machines in the island's casinos. However, with real GNP growth set to average just 1.5% over the coming 5 years, according to our forecasts, we question Fortuno's ability to meet his target of balancing the budget by 2013.

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