Puerto Rico’s efforts to reduce its deficit have been helped by net tax revenues surging by 44.1% in October year over year, following tax hikes, but may be hurt by a new projection of economic growth in the fiscal year at negative 0.8% replacing the old positive 0.2% projection.

Additionally, sales and use tax revenues, which are not included in net tax revenues for the general fund at this point in the year but are diverted to pay off Puerto Rico Sales Tax Financing Corporation (COFINA) bonds, increased by only about a third as much as expected.

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