He Federal government has healthy finances and we are planning the budget for next year, said the virtual President-elect of Mexico on Monday, Claudia Sheinbaum Pardo.
Following a meeting at the National Palace with the Secretary of Finance and Public Credit (SHCP), Rogelio Ramírez de la O, who will remain head of the agency at the beginning of the next administration, Sheinbaum reported on the start of planning work for the 2025 budget.
“We are allocating sufficient resources for the train projectsufficient resources for water projects, resources also for current social programs and new social programs, which in total add up to around 300 billion pesos,” Sheinbaum explained.
The former head of the Mexico City government added that, with the end of this year’s large investments, these resources can be redirected to new investments, in addition to the functioning of the Government.
During the meeting, which was also briefly attended by the director of Petróleos Mexicanos (PEMEX), Octavio Romero Oropeza, topics such as PEMEX’s finances, the Federal Electricity Commission (CFE), and the country’s economic deficit.
Claudia Sheinbaum emphasized that the federal government’s finances are healthy and that a budget is being worked on that considers a 3 percent deficit, an acceptable level for any government.
“We are not planning any significant borrowing, but rather we are reviewing the maturities and amortizations themselves,” Sheinbaum stressed.
He assured that the budget will be reasonable and will maintain all macroeconomic indicators, avoiding risks and greater budget deficits, while guaranteeing public works that generate employment.
Claudia Sheinbaum also stated that there will be responsible management of the money of the people of Mexico with the budget that will be presented to the Congress of the Union in November. Neither a Tax Reform nor a tax increase is considered.
“I am calm and of course we must continue working on the budget. We are not planning a deep tax reform for next year either,” she said.
The virtual President-elect acknowledged that Mexico has healthy finances thanks to the economic policy implemented by President Andrés Manuel López Obrador, highlighting Republican Austerity and the fight against corruption as key factors.
“There was a view in the past that Republican Austerity and the fight against corruption did not generate resources, but the President has shown that there are resources,” concluded Sheinbaum.
Sheinbaum added that her administration will continue with a similar policy and that there is still room to reduce the operating budget without affecting the government’s operations, while guaranteeing the priority programs proposed.
In the morning, President Andrés Manuel López Obrador said that the 2025 Budget is the responsibility of the next government and ruled out any risk to the country’s finances.
“The truth is that the budget for next year, even starting in October, is already up to the constitutional president who will decide on the budget implementation,” said the head of the Executive in his morning press conference.
“So, we are working in a coordinated manner, and we are traveling around the country together, reviewing projects, evaluating programs, like never before.”
When have we ever seen the constitutional president and the president-elect, in this case the president-elect, who will be the constitutional president, come out together? This is a question for López Obrador.
“It just so happens that the current Secretary of the Treasury will continue as Secretary of the Treasury. So, there is no risk, there is no fear of anything, and in addition, public finances are very strong in our country,” he said.
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