Last Tuesday, Rogelio Ramírez de la O, Secretary of the Treasury, in an appearance with deputies of the Finance and Public Credit Commission, said that in the government there is awareness about the need to generate more public income, and the rigidity of spending, and that If a tax reform is necessary, the president of Mexico will be the one to give this scoop.
“We are going to work on it and, in any case, review with the different sectors of the country, if additional reforms are necessary, we will be working on it throughout next year. Still, I believe, there are many opportunities for collection without the need for a profound tax reform,” he told the press.
Republican Austerity will continue
In terms of spending, Sheinbaum explained that important changes will come to reduce the fiscal deficit, which “also implies an effort by the entire Republican Austerity government, but that does not affect the operation of the government, the Welfare programs, investment public, and by strengthening Pemex the country’s finances are strengthened.
Regarding the downgrading of the outlook for Moody’s Ratings’ credit rating from positive to negative, there was an institutional weakening, as indicated by the rating agency, “they would have to provide more arguments or evidence for this.”
He recalled that the credit rating agencies are oriented based on an economic model, different from that of the Mexican government, and that the interest of national and foreign investors in investing in the country continues, and that the Economy and Treasury team works to consolidate the arrival of capital to the country.
