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Investment spending will increase 5.3%; Hacienda presents economic package for 2021


MEXICO CITY.

The Federation’s Expenditure Budget project for 2021 contemplates a total programmable expenditure of 4 billion 618.3 billion pesos, an increase of 1.3% compared to what was approved in 2020; with resources focused mainly on health, physical investment and social programs.

“For 2021, it is estimated that the total net expense paid will add up to 6 billion 257.1 billion pesos, while the programmable expense paid amounts to 4.6 billion pesos. As a whole, programmable spending –which concentrates government actions to promote the long-term development of our country– increases 1.3% in real terms compared to the spending approved in 2020, ”it was detailed.

For the non-programmable expense item, made up of the financial cost of the public debt, the participations to states and municipalities that the Fiscal Coordination Law provides, and the payment of debts from previous fiscal years, amounts to 1.67 billion pesos in the project Expenditure Budget for 2021.

By category, an increase of 9.1% is proposed in the health branch and of 5.0% for the IMSS and ISSSTE as a whole, as well as strengthening the programs for the Well-being of the Elderly and People with Disabilities.

“Before the Covid-19 crisis, the health system had many deficiencies in technical and operational capacities, now we are going to start strengthening it from a very high base,” said Arturo Herrera, head of the Treasury.

Investment spending would increase by 5.3% in real terms, with an allocation of 829.4 billion pesos, with the aim of boosting investment in infrastructure to support the rapid reestablishment of the economy in the short term and in order to improve the internal and external connectivity of Mexico.

It seeks to ensure the continuity and affordability of energy resources that will continue to be the main engine of the global economy for decades; and promote long-term development in general, particularly that of the South-Southeast region. “These activities create jobs and boost the economy,” said Herrera.

On the other hand, almost 30% of the spending will go to states and municipalities, 1.8 billion pesos; the equivalent of more than 50% of the participating federal revenue.

A sanitized Budget …

Herrera warns that there is no room for maneuver; Sauri reminds him that this is decided by the deputies.

“Here we speak with a mask … Or can I take it off?” Asked the Secretary of the Treasury, Arturo Herrera Gutiérrez, addressing the president of the Chamber of Deputies, Dulce María Sauri Riancho, who immediately gave him a gesture of consent at the request of the official.

In the San Lázaro Green Room, with the measures of the new parliamentary normality, it was difficult for legislators to renounce that ritual of taking advantage of the delivery of the Economic Package to make good friends and many photos with the official on whom the always scarce depends resource cake.

To record the covid times, Herrera clarified that this time we would dispense with the CDs that previously contained the Income and Expense Budget Bill and that now everything will have to be reviewed online.

But the secretary also left there an elegant warning that in legislative terms means that they will not have a chance to get their hands on the government project.

“The current economic crisis does not allow great room for maneuver in public finances, but we are also very aware that there is no perfect budget. We always bet on maintaining a constructive dialogue with the Congress of the Union, and my team has received instructions to help them with the calculations and provide information, if you require it, in the legislative process ”.

With the same elegance, the president of the deputies reminded the head of the Treasury that the how and how much and who of the Budget is an attribution of the deputies who, she explained, during September have two fundamental tasks: to analyze the presidential report and review and to resolve, from now on, the income proposal of the President of the Republic for next year.

The PRI Sauri Riancho pointed out that they will have 10 weeks in San Lázaro to define amounts and recipients of the 2021 Budget. “Today more than ever the approval of the Economic Package must provide stability and certainty to the people of Mexico,” said the former governor of Yucatan.

Citing the statements that the official made to the deputies of Morena at the end of August, the former president of the PRI listed that “all the guardaditos, in your own words, secretary, have been used this year: Fund for the Stabilization of Budgetary Income of the States and Oil; trusts that do not require reform of the law to dispose of their resources, etcetera; national savings of several decades have been used to attend the emergency.

But not only then, with the legislators of the ruling party, Secretary Herrera was sincere. Also yesterday, beyond the optimistic figures, he chained future good economic news to contagion control: “There is no dilemma between the economy and health: the economy can only grow steadily if we keep the pandemic contained.”

It was the message of an official who knows that the virus is still here, putting recovery and growth at risk. A virus that sneaks into the jokes of the secretaries who, like him, have already suffered and dodged it:

“He is sanitized and I no longer touched him,” said Arturo Herrera when he handed the deputy Dulce María Sauri Riancho the Covid Budget package.

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