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Despite the economic hardship the government has cut funding of governmental brands such as some under Secretaries of State to allocate these resources to tackle the health crisis and increase the budget address to this sector.
Mexican President Andrés Manuel López Obrador assured on Wednesday that his government would not raise taxes in the 2021 budget plan to be presented before Congress on September 9.
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Although the COVID-19 pandemic has caused a devastating effect on the economy, Obrador emphasized that to recover, other alternatives have to be found, but raising taxes or increasing the public debt is not an option.
AMLO recalled that in previous administrations, "when there was a crisis, people were told that they didn't have to tighten their belts, they always asked the people to tighten their belts. Now the government is tightening its belt."
"Growth parameters have to be established, the price of the Mexican oil mix, income, how much it is contemplated to collect for VAT, for ISR. I can tell you some things that the debt will not increase. I am going to advance you something: they are not going to increase taxes," López Obrador confirmed.
Gobernamos con rectitud y amor al pueblo. Conferencia matutina. https://t.co/lCiQT7npCT
— Andrés Manuel (@lopezobrador_) September 2, 2020
Mexico's gross domestic product (GDP) decreased from 17.3 from April to June 2020, the lowest figure since the National Institute for Statistics and Geography started to collect these data in 1993.
However, AMLO explained that despite the economic hardship, the government had cut funding of governmental brands such as some under Secretaries of State to allocate these resources to tackle the health crisis and increase the budget address to this sector. The decision has allowed hiring over 47.000 health workers amid the pandemic, according to the president.
"We rehabilitated and finished hospitals that had been abandoned, and tests are not charged, medical care is not charged, all those who have needed care for suffering from COVID have been treated for free. All this, due to the austere management of the budget," the president explained.
Furthermore, AMLO warned that taxes should not increase; otherwise, inflation would rise as well. The president added that already over 400 thousand farmers are receiving a wage to plant on their plots, whether they are small properties or ejidos, and this program will continue until the end of his six-year term.
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