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Federalist Governors Urge Equal Resources

The 10 governors grouped in the Federalist Alliance demanded from President Andrés Manuel López Obrador equal resources for the 32 entities that make up the country in 2021.

The leaders urged the president to “postpone the discussion and debate on the Fiscal Coordination System and concentrate on the 2021 budget.”

Likewise, they recognized in the letter that the fall in resources responds to the contraction of the Participable Federal Revenue due to the pandemic, which exacerbated an economic slowdown that had already occurred since 2019.

Similarly, they said they were surprised “by the refusal of the Federation to provide entities with emerging resources to address the severe impact of the pandemic on health systems and local economies, which has put serious pressure on state finances.”

Therefore, they asked López Obrador to focus on the 2021 budget, while they expressed that their position is that “no state can receive fewer resources in real terms than in 2020.”

They also proposed four actions, including the geographic distribution of resources with the Health Institute for Well-being (Insabi) and the Ministry of Communications and Transportation (SCT), as well as ensuring the inclusion of specific infrastructure projects that have an impact on the economic reactivation of the states.

Among the actions is also generating a stabilization fund in case the goal of the Participable Federal Revenue is not reached, using operating remnants of the Bank of Mexico or sub-exercises of the 2020 and 2021 Federation Expenditure Budget.

They also proposed the creation of a fund for emergency health care COVID-19 in states, to offset the impact that the expenses generated by the pandemic had on state finances in 2020 and that they will continue to have in 2021.

“2021 will be an extremely complicated year for state and municipal finances. Having at least the same resources from the Federation for the states will allow to meet the priority needs of the population in areas such as health, security, education and infrastructure and promote national economic reactivation “, they stressed in the attached statement.

It should be remembered that on Wednesday President López Obrador said that the States are given an annual amount, according to population, poverty and other parameters, which “obeys a constitutional mandate”, while he called “not to manipulate” , since the Federation “acts within the framework of legality”.