Published on Thursday, February 13, 2020

Mexico | It is wise to use FEIP resources, but better mechanisms are required

Last year, the federal government used 125 billion pesos from the Budget Revenue Stabilization Fund (FEIP) because of a lower than expected collection. This allowed the objective to reach a primary surplus of 1% of GDP to be met - in fact it was 1.1%.

Key points

  • Key points:
  • Forward, several measures must be contemplated to improve its functioning and to be part of a general scheme of countercyclical policies
  • The country needs to continue using mechanisms such as oil coverage and establish a fiscal rule that ensures maintaining fiscal balances throughout the economic cycles

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