Mexico has the necessary tools and funds to face “eventualities”, although these have a low probability of occurring, said Victoria Rodríguez Ceja, Undersecretary of Expenditures of the Ministry of Finance and Public Credit (SHCP).
During her appearance in the Budget and Public Account Committee of the Chamber of Deputies, the official was questioned by the PRD bench regarding what they considered “great expectations” in the Federation Expenditure Budget Project (PPEF) for in 2022, and on whether income goals could be met to cover spending, especially in the event of another crisis.
In response, the Undersecretariat of Expenditures indicated that the income projections – which have already been approved by both houses of legislators – are realistic and that, in the event of any eventuality, the country could face it.
“We consider that the expectations of income are realistic (…) there are solid foundations for the approaches in the income and they give us the possibility in the part of expenses for 2022. We believe that the expectations are in line with the reality. If a situation should happen, which we see unlikely, there are tools approved by the legislators themselves, such as stabilization funds, “he said.
The PPEF 2022, which must be approved by legislators no later than November 15, proposes that the following year have a historical expenditure of 7.08 billion pesos, which represents an increase of 8.6% compared to what was approved for this year.
Victoria Rodríguez Ceja recalled that this budget is structured around three pillars: reinforcing support for social welfare, especially in vulnerable sectors; support investment projects that trigger regional development, as well as maintain the stability and soundness of public finances.
Presume investment spending
During her appearance in the Budget and Public Account Committee, the official emphasized the investment spending that is proposed in the 2022 PPEF.
“One of the main axes of this project, and throughout the administration, has been the support given to investment as a trigger for economic growth and development. That is why in this project the allocation for investment spending stands out for 982,000 million pesos, an amount that represents growth, which I would also like to highlight, of 14.3% in real terms, with respect to what was approved in 2021 “, he told legislators.
Rodríguez Ceja, the first woman to head the Undersecretariat of Expenditures, explained that investment spending includes spending on infrastructure, which is proposed to be 863,000 million pesos, 17.7% more annually.
This physical investment expense, he added, prioritizes projects that seek to generate greater connectivity between the country’s regions, both by land and by air, with the aim of triggering growth, generating jobs and providing well-being to the population.