“Of course they were taking on debt, what are they going to do after taking on debt? They are going to want to raise taxes, why then how do they maintain the level of debt, how do they service the debt?” Ramírez de la O questioned.
He explained that during Vicente Fox’s administration, Mexico received investment grade, which represents “lower financial cost and is a touch of international confidence in Mexico; that impacts the financing costs of the government, and of the private sector,” he added.
During this administration, the percentage of debt compared to GDP has increased due to the sharp drop in the economy during 2020 of 8.5%; “That was the reason why it went up, but not because we have taken on debt,” added the official.
He stressed that without the need to raise taxes or resort to more debt, Mexico has resources of 1.1 trillion pesos for public investment in infrastructure.