08/12/2012 02:11:00

Mexico 2013 Budget Plan Calls for Moderate Spending Increase, Deficit Cut

--No new taxes included in 2013 budget proposal

--Federal budget excluding Pemex to have zero deficit

--State oil company Pemex financed investment equivalent to 2% of GDP

By Anthony Harrup and Juan Montes

MEXICO CITY--Mexican President Enrique Pena Nieto submitted to Congress Friday his budget plan for 2013, which seeks to eliminate the government deficits of recent years while raising spending modestly from 2012.

Finance Minister Luis Videgaray handed in the proposal at the lower house, saying that the bill includes no new taxes for 2013, as the incoming government will sent a proposal for a broad overhaul of the tax system to Congress next year.

The government will run a balanced budget next year, compared with a deficit this year equivalent to 0.4% of gross domestic product, while financed investment at state oil monopoly Petroleos Mexicanos will remain at the equivalent of 2% of GDP.

"This will be a budget without a deficit. Debt won't be the driver of growth in 2013," Mr. Videgaray said.

Total spending excluding Pemex investment is expected to be 3.576 trillion pesos ($278 billion) next year, up 2.3% in real terms from 2012.

Mr. Videgaray stressed plans for spending on a number of social programs including life insurance for single mothers, a beefed up government pension program for people over 65, a crime-prevention program and an increase in spending on science and technology, all of which were unveiled by Mr. Pena Nieto in his inaugural speech last Saturday.

Because of the change of administration this year, the budget was submitted in December rather than September, and Congress has until the end of the month to debate, modify if needed, and pass the budget.

The proposal estimates that gross domestic product will grow 3.5% in 2013, a slowdown from this year's expected 3.9%. Mr. Videgaray attributed the lower growth largely to the slowdown expected in the U.S. economy. Inflation is expected to be 3% plus-or-minus one percentage point, which is the central bank's permanent target.

Pemex is expected to produce 2.55 million barrels a day of crude oil, of which it plans to export 1.184 million barrels a day. The oil price assumption used to calculate expected revenue is $84.90 a barrel. Mr. Videgaray said the government has taken out oil price hedges around that level, to protect the budget against lost revenue in the event of lower oil prices.

The peso's exchange rate for next year is estimated at MXN12.90 to the U.S. dollar.

The public-sector borrowing requirement, a broader measure of the fiscal deficit, is expected to be equivalent to 2.4% of GDP next year, compared with 2.8% in 2012, with total debt as a percentage of GDP falling to 37% by the end of 2013 from 37.5% at the end of this year.

Write to Anthony Harrup at anthony.harrup@dowjones.com and Juan Montes at juan.montes@dowjones.com

(END) Dow Jones Newswires

December 07, 2012 21:11 ET (02:11 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Comments

#1 | Thursday 14 Nov (10:58)
You've made some good points there. I looked on the web to find out more about the issue and found most individuals will go along with your views on this site japanese po.

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
01 Jul
OMXC20
  I dette Insight vil jeg beskrive, hvorfor verden muligvis står på tærsklen til en grundlæggende æn..
40
01 Jul
DANSKE
En nydelig dame kommer ind i Danske bank og beder om at få et lån på 5 000 kr. Kongsmart som er blev..
36
27 Jun
 
Hvis man er inde, er det med at bide taenderne sammen et stykke tid, selfoelgelig kan hoej beta akti..
32
30 Jun
 
Kære alle debattører.   Som I nok har lagt mærke til så blev debatten stormet med spam i morges :( D..
28
25 Jun
 
Sad det meste af dage i går og fulgte Brexit på bl.a DR2, TV2 og SkyChannel. Ikke en eneste gang kom..
27
25 Jun
 
Det er ingen overraskelse. I medierne gør man alt for ikke tale om samfundets største og væsentligst..
19
01 Jul
GEN
Min short blev lukket i 1230.... tak for kampen 
18
25 Jun
 
Nedenfor i 375606 blandede jeg min mening om EU med synspunkter om folkeafstemninger, det beklager j..
18
25 Jun
I:SP500
Jeg synes lige jeg vil komme med et par kommentarer til dit indlæg. Ikke fordi jeg grundlæggende er ..
18
28 Jun
 
Glædelig nyhed at Dansk Supermarked vil stoppe al salg af buræg.   Jeg håber virkelig burægproducent..
17

Director/PDMR Shareholding

01/07/2016 15:30:06
Stagecoach Group plc The Company was today notified that Anne Griffiths, a connected person to Martin Griffiths, Chief Executive of Stagecoach Group pl..

Form 8.3 - J Sainsbury Plc

01/07/2016 13:37:58
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE ..

Mothercare Plc : Total voting rights

01/07/2016 09:00:01
1 July 2016 Mothercare plc - Voting Rights and Share Capital In conformity with the Transparency Directive's ongoing disclosure provisions for issuer..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Encres Dubuit : Bilan semestriel du contrta de liquidité contracté avec la société de bourse Gilbert Dupont
2
Wärtsilä awarded five major power plant projects in Argentina
3
The Report on Social Responsibility of 2015 of Lietuvos Energijos Gamyba, AB
4
BW OFFSHORE: APPROVAL AND PUBLICATION OF PROSPECTUS AND SUBSCRIPTION PERIOD COMMENCES
5
LivaNova PLC : TOTAL VOTING RIGHTS AND SHARE CAPITAL

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2016   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
02 July 2016 04:57:39
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20160627.1 - EUROWEB3 - 2016-07-02 05:57:39 - 2016-07-02 04:57:39 - 1000 - Website: OKAY