Mexican government cuts 2016 budget by $13 billion
“The spending planned in the budget for the year 2016 reflects a reduction of 221 billion pesos ($13.12 billion), that is 1.15 percent of the gross domestic product (GDP) less than in the planned spending for last year,” Videgaray told Congress.
The proposed 2016 federal budget calls for net spending of four trillion pesos ($282.15 billion), Videgaray said.
“More than half of the adjustment is already being implemented” as part of President Enrique Peña Nieto’s “austerity budget” for dealing with “the needs” and “the reality” of the “national economy,” the finance and public credit secretary said in a press conference after the presentation of the budget.
The government announced in January that it was cutting spending by 124.3 billion pesos ($7.41 billion) due to the collapse of oil prices.
The 2016 budget “was prepared using a different methodology” than in prior years so that “each and every one of the government agency investment projects and programs was reviewed based on their own merits,” as well as their “efficiency” and “effectiveness,” Videgaray said.
The budget presented to lawmakers calls for reducing the 2016 budget deficit from 1 percent of GDP to 0.50 percent of GDP and lowering “the public sector’s financing requirements from 4.1 to 3.5 percent,” Videgaray said. ■