Mexico among Latin countries with the least debt

Gabriel Yorio, Undersecretary of Finance and Public Credit of the Government of Mexico, assured that Mexico will maintain one of the lowest levels of debt in relation to its Gross Domestic Product (GDP) in Latin America, despite the budget deficit expected for 2024.

During an appearance with deputies, Yorio stated that “the Economic Program 2024 will continue to distinguish Mexico as one of the countries with the lowest levels of debt in relation to GDP, well below the alert thresholds established by rating agencies and international financial organizations. “

These statements come just before the lower house of Congress votes on the 2024 Economic Package Revenue Law, which contains fiscal policy and revenue estimates for the Government of Mexico next year. The deadline for this vote is October 20, while the Senate will do so 11 days later.

Despite criticism from the opposition due to the budget deficit of 5.4 %, the highest in three decades, the Undersecretary of the Treasury defended responsibility in debt management, keeping it at a stable and sustainable level that does not exceed 50 %. of GDP, which is “well below the global alert thresholds.”

The Government of Mexico expects to close the six-year term in 2024 with a sustainable debt level of 48.8 %, which would continue to position the country as one of those with the least debt in relation to GDP in Latin America and compared to its peers.

Yorio argued that, despite the deficit, “the country’s fiscal sustainability in the short and medium term will not be compromised.” Therefore, the need to implement new taxes or increase existing ones is not foreseen, since there is still room to increase tax revenues.

The increase in the deficit is attributed to the need to maintain economic momentum in a context of slowing growth in global economies.

The Finance Commission of the Chamber of Deputies of Mexico plans to discuss and approve the Income Law no later than Thursday, October 19, and then send it to the Senate, where the same process will follow.

Once approved, the 2024 Income Law will be sent again to the Executive Branch for its official publication and entry into force.

K. Tovar

Source: Bancaynegocios

(Referential image source: @GabrielYorio, social network X)

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