Puerto Rico's fiscal challenges may loom large, but the government successfully moved legislation to address a $3.2 billion structural deficit and help offset declining revenue with temporary tax measures, as Gov. Luis Fortuño yesterday signed his first fiscal budget into law.

The $7.6 billion spending plan, which the legislature passed Tuesday evening, is smaller than the $9.48 billion fiscal 2009 budget. The commonwealth will use $2.5 billion of sales tax bond proceeds to finance temporary spending measures and pay overdue bills.

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