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
22 Oct
VWS
Pokerchamp - Per Vimmer er gulddrengen trænet hos Goldman Sachs, som har lært den superliberalistisk..
22
20 Oct
VELO
Match, så har jeg set lidt på mine handler og depoter.   Må begynde med at konkludere, at mit handel..
17
20 Oct
VELO
Tvivler på at du får ret. Aktieanalytikerne siger allerede før godkendelsen en KORTSIGTET kurs på 2..
17
22 Oct
BAVA
Jeg tror ikke, at mange her i dette forum er i tvivl om, hvem der er et fjols... Du får det til at l..
14
21 Oct
VWS
Hvis du var en ludo brik var du så ikke slået hjem nu ???
14
23 Oct
VWS
Quantum Utility Generation er på den anden side af "Mountain Friends", og de kan nu fortsætte deres ..
12
23 Oct
VWS
Aputsisaq - Blev der nødvndigt at starte en negativ tråd fordi at Stockrosen lige havde startet en p..
11
23 Oct
VWS
Jeg har kigget lidt på Vestas USA kunde First Wind, for at se hvordan det går med de 3 Wind Power pr..
11
23 Oct
 
Nej, der er klart tale om en Hanging Penis formation. Ikke et godt tegn. Jeg køber først når vi har ..
11
21 Oct
VWS
Vestas øverst chef for "Americas" - Chris Brown virker meget optimistisk. Han har udtalt til Recharg..
11

Tech Companies Send Criticism Along With NSA-Related Data -- Update

04/02/2014 00:06:00
By Danny Yadron Technology companies including Google Inc. and Microsoft Corp. released new figures on the amount of data requests they received from U.S. ..

U.S. Hot Stocks: Hot Stocks to Watch

03/02/2014 14:07:00
Among the companies with shares expected to actively trade in Monday's session is Herbalife Ltd. (HLF). Herbalife Ltd. (HLF) raised its fourth-quarter outl..

Pfizer Study Meets Primary Endpoints

03/02/2014 13:05:00
Pfizer Inc. (PFE) said Monday that a Phase 2 trial of its advanced breast cancer treatment met its primary endpoint. Pfizer said a study comparing the effec..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Lundbeck presents new efficacy and safety data analyses for desmoteplase in patients with acute ischaemic stroke
2
ShaMaran Files Preliminary Short Form Prospectus for Rights Offering
3
HFF conference call to discuss third quarter 2014 financial results scheduled for Monday, November 10th
4
Multi-Color Corporation Announces Date of Second Quarter Fiscal Year 2015 Financial Results Conference Call and Webcast
5
Thomson Reuters Announces Finalists for the Inaugural Taxologist Awards
Euroinvestor around the globe: Euroinvestor.dk | Euroinvestor.se | Euroinvestor.no | Euroinvestor.fr | Forexinvestor.com| Wisselkoersen.nl | Valuta.se | Valutaveksel.no | Divisas.es | Valute.it
Copyright Euroinvestor A/S 2014   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.
 
25 October 2014 21:36:35
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20141024.3 - EUROWEB3 - 2014-10-25 22:36:35 - 2014-10-25 21:36:35 - 1000 - Website: OKAY