Mexico is set to announce its 2021 budget

The Finance Ministry has one month left to present the 2021 Budget

Mexico is set to announce its 2021 budget
The COVID-19 pandemic has resulted in an economic crisis and unemployment — Photo: Carlos Zepeda/EL UNIVERSAL
English 10/08/2020 09:04 Mexico City Editorial Actualizada 09:13
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The Finance Ministry has one month left to present the 2021 Budget. The Mexican economy could partially recover what it lost amid the COVID-19 pandemic, but it will depend on what is established in the budget. What sectors will be a priority? What sectors won’t?

The year 2020 taught the world a few lessons. The most important one is not to cut the health budget. The arrival of COVID-19 took health care workers and public hospitals by surprise, they lacked the necessary equipment to treat patients. Moreover, patients often complain about medicine shortages. Health is an area that should receive all the necessary resources.

Another indisputable fact is that Pemex has become a serious burden that does not generate profits. The Mexican government has invested thousands of millions into the oil company, but it only generates financial losses. During the first half of 2020, Pemex’s losses amounted to MXN 606,588 million, mainly because of lower oil prices and sales. The longer the pandemic lasts, Pemex will lack liquidity, something that will affect its operations and finances. The construction of a new oil refinery should be a priority?

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Economic stagnation is affecting the aviation industry because it is unknown when international trips will return to normal. Does it make sense to continue building the Santa Lucia airport?

On the other hand, the Finance Ministry has found new opportunity areas to boost tax collection. The government department considers that before raising taxes, the government must tackle tax evasion.

Shaping the 2021 budget involves huge responsibility. Mexico committed to education, health, security, and pensions; therefore, decisions must be made pragmatically, without any ideology or political gain. Furthermore, what was a priority at the start of 2020 might not be a priority in 2021. Now it is important to look after the economy of Mexicans.

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