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News Around the Republic of Mexico | November 2005
Fox Announces Aid for Chiapas Reconstruction Bloomberg News
| Mexico's President Vicente Fox greets workers during a visit to the community of San Miguel November 1, 2005. The federal government has been accused of neglecting damage in Chiapas after Wilma devastated Cancun. (AP Photo/Eduardo Verdugo, Pool) | President Vicente Fox asked Congress to designate 10 billion pesos (US929 million) from next year's budget to post-hurricane reconstruction efforts in southeastern states on Tuesday. The lion's share 8.5 billion pesos (US790 million) would go to Chiapas, hard-hit by the floods caused by Hurricane Stan.
Congress is currently debating the federal budget in which 81 billion pesos could be reassigned from Fox's original proposal.
The president specified that 5 billion pesos should be allocated to the federal natural disaster fund, Fonden, while the remaining amount should be distributed between agencies focused on housing (Fonapo), water resources (CNA), agriculture, highway maintenance, and the Indigenous Peoples' Development Commission.
Finance Secretary Francisco Gil Díaz announced a package of economic aid, including exemption from income taxes, to stormaffected regions.
In addition, the government plans to disburse more funds to rebuild the states of Quintana Roo, Yucatan, Oaxaca, Veracruz, Puebla, Hidalgo and Guerrero, hit by hurricanes Stan and Wilma, Fox said in a transcript of a speech sent by the president's office.
"For sure, the amounts will continue to grow," Fox said. He didn't give a figure on spending in those states.
At the same time, the Democratic Revolution Party (PRD) has committed to donating 10 percent of its 2006 campaign budget to help hurricane victims in the southeast of the country.
The party's president, Leonel Cota Montaño said that the funds will be given to the Red Cross and other non-governmental organizations.
The federal government provides registered parties with a budget annually, which is doubled in presidential election years.
Cota said the PRD will donate 37 million of the 370 million pesos it receives, "no matter what." Some have speculated that the party could be fined for improper use of campaign funds. However, Cota said he didn't believe helping hurricane victims could be illegal, but the party is willing to assume the consequences for its decision.
"The PRD has no electoral interest" behind the donation, said Cota, even though Chiapas will elect a new governor next year. |
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