Mexico City.- President Claudia Sheinbaum assured that the deficit for 2025 will be around 3.5 percent of GDP, although she admitted that there are budget pressures due to the increases that social programs and works announced by her Administration will require.
The President was questioned about the calculations of some analysts who suggest that the deficit could be around 5 percent and not the goal announced by the Ministry of Finance.
In response, from his morning, Sheinbaum reiterated that there will be a reduction, but warned that commitments in terms of well-being must continue. “The objective for next year is a significant reduction in the deficit, the objective is to reach 3.5, but we are looking, we don’t want it either, eh? There will be a significant reduction, as they say, the markets will receive it well,” he said. .
“What can’t be done? Which is, let’s say, what was before: public works have to continue and welfare programs have to continue, both those that are already increasing (and the new ones). “The deficit will decrease very significantly, the objective is to reach 3.5 and, if not, it would be around that percentage.”
The Chief Executive referred specifically to some of the spending pressures to which her Administration will be subject next year. Shienbaum recalled that some 400,000 older adults will turn 65 and, therefore, will begin to collect their bimonthly pension in 2025. He also recalled the implementation of new programs, such as pensions for women aged 60 to 64, the increase in school scholarships and the hiring of doctors to care for older adults at home. The President maintained that investment in public works cannot be stopped, because jobs are generated and private investment is also enhanced. “For example, there are nearly 400,000 older adults who have already turned 65 and who have to be given support, their pension, and new social programs,” he said. “And public works, public works, as was already demonstrated with President López Obrador, with the transformation agreement, with this new development model of the Country, when there is public work, private work, private investment and In addition, jobs are generated, which is very important. So closing public investment would not be correct.” In this context, Sheinbaum recalled his commitment not to make adjustments to tax rates. When asked, he ruled out the possibility of a fiscal crisis and considered that there are enough funds to close this year well. “Would you rule out a fiscal crisis?” “No, zero, nothing, there are resources in the Treasury and there is no problem, we had a meeting on Monday and the Government is closing well,” he responded. (The deficit) is going to close a little less than 6 percent, a few points, that is at least the estimate that the Ministry of Finance has,” he assured.
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