translated from Spanish: Budget punishment to States and municipalities opens way to collapse: Octavio Ocampo

Morelia, Michoacan.-by means of a statement the lawmaker Octavio Ocampo Córdova, said that presupuestalmente punish States and municipalities in 2019 from the Federation, not only violates the Federal Pact, but which also opens the way for municipal and State Governments collapse.
He also a member of the Committee on finance and public the LXXIV legislature of the Congress of government debt, said that “the next federal administration has already announced its projections for next year economic package, where the concentration of resources” by the Federation will be a reality, including a strong punishment to States and municipalities that, under this scheme are at risk of collapse”.
The Deputy by the districts of Huetamo, noted that the finances of States like Michoacan and its municipalities from decades ago are loss-making, so cut even more oxygen which means the federal resource to them is to condemn them to the breakdown and collapse.
“The alternatives that this stage of reduction of resources means for States and municipalities, is to close window on different services, programs, and areas in order to optimize resources, either the acquisition of loans that allow them to make to their” commitments”.
He recalled that in Mexico in the last decade municipalities tripled its debts, going from 16.9 billion pesos in 2007 to 51.4 billion in 2017 according to data from the center of studies for the public finance in the Federal Congress, this lack of liquidity and availa ilidad of resources that have been suffering due to an unfair law of Fiscal coordination in the country, which rewards the Federation and punishes States and municipalities.
In the case of Michoacan said that the decrease of federal resources can only be viable if the Federation again assumed the rectorship of the education sector and all that this entails, since that is where will be the most important part of the budget that has this OJ.
Octavio Ocampo Córdova recalled that the budget provided by the federal Government, is generated in the States of the Republic and the city of Mexico, IE is for all Mexicans and therefore must be distributed under conditions rationality and justice between Federation, States and municipalities.

Original source in Spanish