AMLO Raids Mexico Stabilization Fund

Goodbye to 41% of our savings

It is a pity that we have to lose the savings of Mexicans that were destined for crisis

Since 2000, Mexico has a Stabilization Fund. It is a saving for contingencies in government revenues. What was thought when this decision was made? In which our country needed to have a “ mattress ” of savings in case of a crisis. For years, instead of spending that money, we saved responsibly to increase our balance.

In 2012, that saving amounted to just over 17 billion pesos and in 2018 it was left at its highest historical amount: more than 280 billion pesos. It was one of the most responsible shields of our economy against contingencies beyond our control such as a drastic fall in international oil prices; a trade war; global geopolitical problems; a fall in the growth of the United States that significantly contracted the demand for our exports, that kind of thing. That saving was never thought to cover internal policy errors.

It is not a small box for what is offered. It was a responsible saving for a big crash and that it didn’t take us off guard. And in the Report on the Economic Situation, Public Finances and Public Debt, for the second quarter of 2019, we are informed on pages 55 and 56 that: “ Budget revenues in 2019 are expected to be lower by 47.4 billion of pesos, with respect to those foreseen in the LIF 2019, because lower oil revenues are estimated at 153.6 billion pesos, due to a lower crude oil production platform, and lower non-oil tax revenues by 72.8 billion pesos.

These lower revenues are partly offset by the FEIP resources for 121 billion pesos, which are non-tax revenues of the federal government. ”

It is a real shame that as a result of bad domestic policies (mainly the cancellation of the new airport and not having a business plan for solvent Pemex ), we have to lose 41% of the savings of Mexicans who were destined for crises or contingencies out of our control. The SCT itself recognized that the cancellation of the airport had cost 100 billion pesos.

And where will these resources come from? Of the savings of Mexicans destined for another purpose. The Ministry of Finance has to settle accounts this closing of 2019 and has no other, you have to close the accounting and the numbers have to square. Today they do not add up and the Treasury has already done its part where, at least, 125 programs disappeared or decreased their budgets and sensible fiscal policy.

But bad decisions in other areas are hanging the closure. Too bad for the Mexicans that we are the ones who will end up paying 121 billion pesos of collective savings. The question is: and when there is a real financial emergency, for reasons beyond our control, what will we do? As I have always said: those who will suffer the most then are the ones who have less.

By Vanessa Rubio

Source: Heraldo de Mexico

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