Secretary of the Treasury recognized that Mexico’s debt during the AMLO government grew 7%

The Secretary of Finance and Public Credit, Rogelio Ramírez de la O He appeared this Tuesday in the Chamber of Deputies as part of the gloss for the fourth government report of President Andrés Manuel López Obrador, where he admitted that the public debt increased by 7% since 2018, although he assured that it is controlled.

“In real terms, the increase in public debt, by the fourth year of the administration, it will have increased 7% from the base of December 2018, when the fiscal management of this administration began. It should be noted that this increase is significantly lower than the average growth of 27% observed in the three previous administrations”, argued the head of the Treasury.

The federal secretary said that the balance of the debt, at the end of the year, is estimated at 48.9% of GDP2 percentage points below the amount approved for 2022 by Congress.

It was the deputies of the opposition bloc who reproached the head of the Treasury for the “joyful figures” of the Economic Package 2023cost overruns in large government works and carelessness in spending on health and education.

The deputy of PRD, Miguel Angel Torres Rosalespointed out to the federal secretary that this Economic Package “presents dream figures” and they are not visible to reality.

In response, Ramirez de la O He affirmed that planning for the year 2023 cannot be anticipated based on a reality that is much lower than that of the latest recent data.

“It is true that there are oscillations and that they have become more frequent, but that does not give us license to be venturing because what we are doing is preparing a package for everyone, which includes the availability of expenses and is based on estimates. of income that also comes based on the latest trend”, said the head of the Treasury.

(Photo: Pixabay)
(Photo: Pixabay)

The SHCP pointed out that with figures for July 2022, the federal government net debte stood at 10 trillion 801.1 billion pesos, of which 78.7% is denominated in national currency and 74.3% of government securities are fixed-rate and long-term.

He added that the Historical Balance of the Financial Requirements of the Public Sector (SHRFSP) amounted to 13 trillion 376.1 billion pesoswhile the net debt of the public sector stood at 13 trillion 387.9 billion pesos.

According to data from the Treasury, this Historical Balance in December 2018 (when Andrés Manuel López Obrador took office) it was 10 billion 551 thousand 718 million pesoss (million pesos).

Thus, in 2022, the balance exceeds 13 billion pesos, that is. 2.6 billion more than at the beginning of the current administration.

According to the federal government itself, from July 2019 to April 2022, the largest foreign debt refinancing exercise was achieved, by refinancing approximately 21,298 million dollars.

The issue of public debt has been recurrent in the speeches of President López Obrador, who has maintained that his government will not indebt the country, however, on December 22, 2021, the Tabasco recognized the increase in public debt but he justified it with the fall suffered by the economy due to the Covid-19 pandemic.

“The debt went up, but we are already going down,” said the president in his morning conference.

The president assured that the director of Maseca promised to follow measures in times of inflation (Screenshot: YouTube)
The president assured that the director of Maseca promised to follow measures in times of inflation (Screenshot: YouTube)

To justify the increase in public debt in his administration, López Obrador referred to the 2020 health crisis.

“As soon as we were hit by the most drastic economic crisis in the last 100 years, the fall of the economy was brutal in the world. In the case of Mexico, we have not suffered an economic downturn like the one in 2020 since the 1930s. So, that’s why this. It is not about debt, that is, we have not contracted debt”.

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