fiscal balance latest publications
The Government submitted, the fiscal reform bill that includes social measures, mostly transitory, to mitigate the effects of the pandemic on the most vulnerable and raises tax collection by 15.2 trillion pesos permanently, of which 70% from corporate taxes and the rest from anti-evasion and austerity measures.
Despite the reduced fiscal space, we consider it desirable to boost private consumption and, by the same token, aggregate demand by reducing the target for the 2019 primary balance to 0.5% of GDP.
February 8, 2018
Mexico | Higher oil prices in 2017 helped to improve the fiscal and external balances
Although we predict that crude oil prices will continue to recover this year and beyond, a substantial improvement in these balances will only be achievable in the medium term if the following factors remain: i) strong performance of tax revenues; ii) strict discipline over public spending; and iii) the impulse derived from…