Mexico Defends Budget Plans as Growth Forecast Comes Under Fire
Mexico’s finance minister defended the 2020 budget proposal Monday, insisting that his tax revenue and spending projections are credible, despite concerns that the underlying forecasts for growth and oil output are overly optimistic. President Andres Manuel Lopez Obrador’s second budget since winning office last year aims to boost spending on welfare programs, security and state oil company Pemex, while also eschewing new taxes or fuel price hikes. FILE – Mexico’s President Andres Manuel Lopez Obrador gestures during an official event in Sabinas, in Coahuila state, Mexico, May 4, 2019. “We have presented a realistic budget, without underestimating income or expenditures,” Finance Minister Arturo Herrera told a news conference. “For a very long period, income was underestimated in a more or less systematic way, so that there was always surplus income at the end of the year.” The administration cautiously freed up more funds for spending, targeting a primary fiscal surplus of 0.7% of gross domestic product (GDP). The figure was less ambitious than earlier targets, but feasible in the view of economists. There was less confidence in Herrera’s forecast that Mexico could achieve growth of 1.5%-2.5% next year after three consecutive quarters of economic stagnation through June. ‘Relatively optimistic’ “It’s …