AMLO’s 2019 budget will consider airport payouts

The 2019 budget proposal drafted by the transition team of Mexico’s president-elect will aim for a primary budget surplus of 0.8 percent of gross domestic product (GDP) , the team said on Tuesday .

In a statement, the team added that they were aware of investor concerns over a plan to cancel a part-built new airport for Mexico City, but it would meet all obligations and the budget plan would consider them.

Last Wednesday , the incoming finance minister of Mexico, Carlos Urzúa , said that the upcoming government would not tap the central bank’s international reserves to finance public spending and investment.

President-elect Andrés Manuel López Obrador

, set to take office on Dec. 1 , on Monday said he had decided to heed the results of an informal referendum that called for abandoning a multi-billion dollar airport project for Mexico City , sending Mexican markets down sharply.

Local media and analysts have speculated that López Obrador’s government could try to hold another public vote of the use of the reserves.

“ No, no, no, the international reserves won’t be touched, they’re the central bank’s ,” Urzua said when asked about the reports.

Benjamín Robles, a lower house lawmaker from the small leftist Labor Party

that is an ally of López Obrador’s National Regeneration Movement (MORENA) party, has submitted a bill to change the Bank of Mexico ’s mandate to include economic growth and employment.

Currently the Bank of Mexico targets 3 percent inflation .

Robles said the central bank’s mandate should be changed to promote growth, similar to the U.S. Federal Reserve, but he said it was a “lie” that he had called for a public vote on the use of central bank reserves.

Mexican airlines and airport groups report MXN$22 billion drop

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