The Mexican government, led by President Claudia Sheinbaum, is about to present its first budget. Expectations are high as the country faces its largest fiscal deficit since the 1980s. This budget is expected to contain significant cuts to reduce said deficit.
Analysts believe that drastic cuts could lead the Mexican economy to a contraction, worsening the public financial situation. With a projected deficit of around 6% of GDP, it is crucial for the government to take measures to ensure the sustainability of finances.
A long-term tax reform is deemed inevitable for Mexico, but it must be carried out gradually and consistently to avoid negative impacts on the economy. The importance of maintaining the macroeconomic stability of the country is emphasized.
The current context, marked by economic slowdown and uncertainty, requires a careful approach in budget preparation. It is essential to prioritize fiscal prudence and seek solutions that balance the need to reduce the deficit with the protection of economic activity.
The importance of assessing the financial situation of Pemex, the national oil company, and proposing savings measures is emphasized. A moderate and realistic approach to deficit reduction is key to maintaining the confidence of investors and rating agencies.
Amid a challenging economic landscape, with low growth projections for the next year, Mexico faces the challenge of balancing its public accounts without stifling economic activity. The previously implemented republican austerity must be combined with adequate fiscal measures to achieve sustainable long-term results.
