Fresh Austerity Plans Bring Significant Budget Cuts to Government Departments Chris Punch - Global Government Forum
go to original September 9, 2016

Finance minister José Antonio Meade, who only took up post on Wednesday, aims for big spending cuts and return to surplus. (Reuters)

Government departments in Mexico are to face significant budget and workforce reductions, as the country’s new finance minister has pledged a return to a primary surplus for the first time since 2008.

Presenting his 2017 budget to MPs, José Antonio Meade, announced spending cuts of of 239.7 billion pesos ($12.83 billion), or 1.2% of gross domestic product, targeting a primary surplus of 0.4 % of (GDP) in 2017.

Meade, who only took up the post on Wednesday following the sudden resignation of his predecessor, said spending cuts would come from cuts in government personnel, and from reducing government operating costs by about a fifth, according to a report by the Financial Times newspaper.

He also said that the cuts would be spread across ministries, according to Reuters news agency.

A hefty chunk of the cuts — about 100bn pesos ($5.36 billion) — will fall on state oil company Pemex, which is already facing a funding squeeze and has racked up losses worth several billion dollars over many years.

Read the rest at Global Government Forum

Related: Peña Nieto Doubles Down on Austerity for Mexico in 2017 (teleSUR)

Related: Impact of Change of Treasury Secretary from Luis Videgaray to José Antonio Meade (Mexico Voices)

Related: Mexico’s New Finance Minister Spurns Donald Trump (Reuters)

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