Mexico will continue to have one of the lowest levels of debt as a proportion of its gross domestic product (GDP) in Latin America despite the deficit contemplated in the 2024 budgetassured this Tuesday Gabriel Yorio, Undersecretary of Finance and Public Credit of the Government of Mexico.
The 2024 Economic Program will continue to distinguish Mexico as one of the countries with the lowest levels of debt as a percentage of GDPwell below alert thresholds determined by rating agencies and international financial organizations,” he said in an appearance with deputies.
Yorio’s statement comes just hours before the lower house of Congress votes on the 2024 Economic Package Income Lawwhich contains the fiscal policy and estimates the income for the Government of Mexico next year, with a deadline of next October 20, and for the upper house, the Senate, 11 days later.
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The 2024 Economic Package, which the Government of Mexico delivered on September 8 in the lower house of Congress, estimates income of 7.3 billion pesoswhich would mean an annual increase of 0.8% in real terms.
The budget has received criticism from the opposition for contemplating a deficit of 5.4%, the highest level in nearly three decades.
But the Undersecretary of the Treasury defended that debt management has been responsible, with a stable and sustainable level that does not exceed 50% of GDP, which is “well below alert thresholds” at a global level.
He added that the expectation of the Government of President Andrés Manuel López Obrador is to close the six-year term, in 2024, with a sustainable debt level of 48.8%.
This level places, and will continue to place Mexico, as one of the countries with the lowest debt/GDP levels in Latin America and compared to peer countries,” he emphasized.
Yorio argued that, despite the deficit, “the country’s fiscal sustainability is not compromised in any sense in the short or medium term.”
That is why he insisted that new taxes or increasing existing ones will not be necessary, since there is still room to expand tax revenues.
He attributed the increase in the deficit to maintaining economic momentum in a context of moderation in the growth of global economies.
According to the Finance Commission of the Chamber of Deputies, the Income Law would be discussed and approved no later than next Thursday, October 19, and then sent to the Senate to carry out the same procedure.
Once approved, the 2024 Revenue Law is sent back to the Executive Branch for subsequent official publication and entry into force.
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