AMLO’s 2019 budget will consider airport payouts

In a statement, the team added that they were aware of investor concerns over the cancellation of NAIM

AMLO’s 2019 budget will consider airport payouts
English 03/11/2018 11:34 Newsroom Mexico City Reuters Actualizada 11:45
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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.


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