The Secretary of the Treasury, Arturo Herrera, presented to the Deputies on Sunday the proposal for an economic package of 2020, noting that the three items that have priority in the allocation of resources are social welfare, the security area and Pemex.
The draft budget document for 2020 foresees real annual GDP growth in 2020 of between 1.5% and 2.5%. “In particular, public finance estimates are considered one-time growth of 2.0% real annually,” Treasury said.
Find out: Treasury forecasts growth of 2.0% and the dollar at 20 pesos by 2020
More money for Welfare
The Welfare Secretariat, the Treasury documents, states, “projects a 2020 budget of 173.1 billion pesos, higher than 22.5 billion pesos than authorized in 2019”.
The Secretariat would have an increase of 11% in real terms, compared to what was approved in 2019.
The budget planned for the Sowing Life Program in 2020 is 25.1 billion pesos, “a figure greater than 10.1 billion pesos than allocated in 2019”.
Regarding the Pension for the Welfare of Persons with Permanent Disabilities Programme that supports children, it is stated that “it will have a budget of 11.9 billion pesos, a figure higher than 3.4 billion pesos than allocated in 2019”.
The total amount of resources projected for Higher Education is added elsewhere, totaling 131,454.9 million pesos, “greater at 7.6% in real terms than approved in 2019”.
Pemex supports
As for Petróleos Mexicanos, Secretary Herrera indicated that the proposal is to support the company for 86 billion pesos, to face the problem of the fall in oil production.
Of that figure, 46 billion pesos are capitalization supports, and the other 40 billion pesos is an amount that will no longer be collected in company taxes.
Security spending, with money for the Guard
Regarding security, the proposal includes an expenditure of 494 million pesos for the construction of National Guard facilities, by the Ministry of National Defense, and “675 million pesos for the transformation and modernization of the industry military, in Puebla.”
The Office of the Attorney General of the Republic is expected to be granted an increase of 14.5%, in real terms, compared to what was approved for 2019, amounting to 18,202 million pesos.
For the Ministry of Security and Citizen Protection, it is expected to be granted an increase of 6.3% in real terms, compared to what was approved for 2019; on the other hand, the Sedena is expected to be awarded 3.1% less, and the Navy 1% more.
The secretaries that would receive the most and the most ‘punished’
In the proposed budget for 2020, the secretariat that would have the largest increase in resources is Energy, of 72% in real terms, compared to what was approved for this year; it is followed by the Civil Service, with an increase of 56.5%.
On the other hand, Tourism is expected to be awarded 44.7% less in real terms, compared to what was approved in 2019, and to Sedatu 43.7% less.
The Ministry of Health, in real terms, would have a reduction of 0.1%, compared to what was approved for 2019.
Infrastructure projects
The proposal includes an expense of 5.372 million pesos for the airport of St. Lucia, and 2.5 billion pesos for the Maya Train.
Congressional Spending
Regarding the Legislative and Judicial Powers and the Autonomous Entities, the proposal totals 123.3 billion pesos, 6.1% more in real terms than that approved for 2019.
“The Legislative Power proposes to exercise a budget by 2020 almost equivalent to the approved 2019, as it is just higher than 0.5% in real terms, and represents 11% of the total,” Hacienda reported.
Total spending and projected revenue
In its statement, the Ministry of Finance detailed that for next year a total net expenditure of “6,096.3 mmp is projected, representing a nominal increase of 4.4% (0.8% real) compared to that approved in 2019.
“Total public sector revenue for 2020 is estimated at 6,096.3 billion pesos (mmp) and consists of 5,511.9 mmp of budget revenue and 584.4 mmp of funding revenue,” the Secretariat said.
Want to know the components of #PaqueteEconómico2020?????
Get in here! ?? ?? pic.twitter.com/t5vvzT4D6V https://t.co/u3qBsfCDeZ
— Treasury (@Hacienda_Mexico) September 8, 2019
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