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Mexican President Andres Manuel Lopez Obrador at a press conference at the National Palace in Mexico City in August 2019. REUTERS / Henry Romero

The government of President Lopez Obrador presented his 2020 budget on Sunday, September 8, to Parliament, which must approve it. A fairly conservative budget of $ 312 billion that has caused rather positive reactions from the financial markets, although they have certain reservations.

With our correspondent in Mexico, Patrick John Buffe

Favoring austerity, macroeconomic stability and the fight against tax evasion, these are the main principles that governed the development of Mexico's 2020 budget. It gives priority to social spending and Pemex, to continue the recovery of the Mexican public oil company. But it is especially in matters of public security that it proposes a strong increase, with expenditures amounting to three billion dollars.

At the expense of infrastructure

These budget increases, however, come at the expense of infrastructure, including flagship projects of President Andrés Manuel Lopez Obrador: the Laya train that will allow tourists to visit sites in southern Mexico, a new oil refinery and the interoceanic corridor of the country. isthmus of Tehuantepec. In total, cuts of one billion dollars.

Well received by the financial markets

Nevertheless, this budget is rather well received by the financial markets, because of its conservative and fiscally realistic nature and because it shows the commitment of the government to maintain sound finances. On the other hand, there is some skepticism about growth projections considered too optimistic: between 1.5% and 2.5% in 2020, while this year the country is close to economic stagnation.

LISTENING TO: Hélène Combes (CNRS) : " Manuel Lopez Obrador wants to fight against poverty "