| | |  News Around the Republic of Mexico | November 2008 
Mexico's Lower House of Congress Approves Budget With Deficit
 Adriana Lopez Caraveo & Jens Erik Gould - Bloomberg
go to original
 |  | President Felipe Calderon's government aims to boost public spending next year to create jobs and spur growth, buffering the economy against the global slowdown sparked by the collapse of credit markets. |  | | | |
Mexico's lower house of Congress approved the 2009 budget, which includes the first deficit in four years and extra spending to help blunt the effects of a global credit crisis.
Lawmakers approved by a vote of 436 to 44 the spending portion of the budget, which will now move to the Senate. It calls for 3.05 trillion pesos ($232.7 billion) in outlays, and a deficit of 1.8 percent of gross domestic product. The lower house approved the income portion of the budget on Oct. 15.
President Felipe Calderon's government aims to boost public spending next year to create jobs and spur growth, buffering the economy against the global slowdown sparked by the collapse of credit markets. The deficit would be the largest since a 2.9 percent shortfall in 1990, according to data compiled by Gabriel Casillas, an economist at Banco UBS Pactual.
"At this time of global slowdown and extreme volatility, it's the right thing to do," said Casillas, who is based in Mexico City. "A stimulus package is the only way to help the economy to not slow down so much."
The budget assumes the price of oil exports will average $70 a barrel in 2009, forecasts an exchange rate of 11.7 pesos to the dollar, and economic growth of 1.8 percent next year.
To contact the reporter on this story: Adriana Lopez Caraveo in Mexico City at adrianalopez(at)bloomberg.net; Jens Erik Gould in Mexico City at jgould9(at)bloomberg.net. |
|
| |
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us