Public Finances latest publications
The permanent reduction of Pemex's tax burden and the possible additional contribution of resources to Pemex beyond 2022, should be supplemented with changes in tax policies that help keep federal government revenues relatively stable and do not risk meeting fiscal targets.
Financial support from the federal government will buy time, but Pemex's credit rating remains at risk. In January, Fitch downgraded the Pemex rating from BBB+ to BBB- after the outlook was revised to negative in October last year.
The country has made great advances in the last twenty or so years in designing an institutional framework that contributes towards having well-ordered public finances. In 2006 the Federal Budget and Fiscal Responsibility Act was passed.
As of this year, public debt as a percentage of GDP will stop increasing. 2017 will be the first year since 2008 with a fiscal primary surplus. It is positive that the government sets a target for a fiscal primary surplus of 1% of GDP for next year. It is adequate that the government is taking the average of GDP growth fore…