• WHAT Given Mexico’s slower growth rate and lower oil prices, AMLO’s Government will have to plan deeper cuts in its 2020 federal budget that could reach around 325 billion pesos (USD 16.1 billion) less than the 2019 budget level, according to México Evalúa, a public policy think tank.
• NEXT On September 8, the Finance Ministry will unveil the its revenue budget proposal. Back in April, the Government said it expected a cut of around 88 billion pesos (USD 4.3 billion) compared to the 2019 budget level. The approved federal budget for 2019 was 5.46 trillion pesos (USD 272.4 billion).
• QUOTE: “The Government needs to build trust among economic agents to promote investment and growth. It is necessary to propose credible policies to generate certainty”, says Marina Campos, the program director for public budget and accountability at México Evalúa.
• RELEVANT Earlier this year in its July 2019 World Economic Outlook, the International Monetary Fund (IMF) warned that the approval of a prudent 2020 budget is one element that observers will be looking at to confirm the AMLO’s Government commitment to fiscal responsibility.
