The implementation of a progressive tax reformif it occurs in this six-year term, it must be accompanied by an improvement in governance, said the Alliance for Tax Justice.
Given the various challenges that Mexico faces in terms of public finances, the Alliance for Fiscal Justice – made up of various civil organizations – pointed out the importance of undertaking a progressive tax reform that increases public revenue and help close the inequality gaps.
“It is no secret that Mexico faces important challenges to guarantee its sustainability. It is also not a secret that income is not enough to guarantee all the rights of the population,” Jorge Cano, researcher at México Evalúa, indicated in a webinar.
In this sense, given the need for greater resources in areas such as health and education, he pointed out that it is not only enough to have an increase in income through a tax reform, but also to use them in a better way, which is why it is necessary to improve governance in the country.
Estefanía Vela Barba, from the Intersecta organization, stressed that to guarantee human rights it is necessary to address budget issues, which is why she highlighted the little fiscal space that public finances have in Mexico.
How to improve governance?
To improve governance, and therefore decision-making in matters of public finances, the Alliance for Fiscal Justice proposed six points to follow:
- Tag income for specific purposes
- Guarantee health budget for people without social security
- Strengthen the regulation of budget adjustments
- Improve transparency of surplus income and debt
- Transparency and accountability of trusts
- Measure the budgetary impact of legislative reforms
“More efficient and fair spending would do a series of things that are urgent in a country like Mexico. One of them is to reduce inequality, another is to guarantee rights, in addition to increasing the well-being of the population, as well as more sustainable development,” said Diego de la Mora, researcher at Fundar.
