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By KELIN DILLON

On the afternoon of Wednesday, Sept. 8, Mexican Secretary of Finance and Public Credit (SHCP) Rogelio Ramírez de la O presented Mexico’s 2022 budget plan to the Chamber of Deputies under the administration of President Andrés Manuel López Obrador (AMLO), featuring no increase in taxes, increased spending in the health sector, and historical levels of public investment.

“Mexico will enter 2022 without increasing taxes, with macroeconomic and social stability and in better conditions than many countries with higher levels of development to ours. This will allow the entire nation to take full advantage of the momentum of the recovery of the global and national economies,” said Ramírez de la O.

In efforts to curb the issues caused by the covid-19 pandemic, the budget outlined a 27.6 percent increase in allocations to the Public Health Secretariat to help combat the virus, which would see some 800 billion pesos relegated to the purchase of vaccines, medicines and free health services, if approved.

“The resources to continue facing the pandemic are fully guaranteed in this budget,” Ramírez de la O went on to say.

The SHCP likewise detailed that the near 1 trillion pesos in public investment spending is an unprecedented figure, with the aim of strengthening the impoverished and supporting domestic consumption.

The budget also forecasted an economic growth of 4.1 percent, with inflation of 3.4 percent and an oil price of $55.1 per barrel, an estimated average interest rate of 5 percent, and an exchange rate of 20.30 pesos to the U.S. dollar.

For his part, AMLO touted the economic proposal as being fair and beneficial to social programs.

“The document that was delivered is very professional, realistic. It allows us to have income to finance works, programs. Mexico’s debt does not increase. Taxes do not increase,” said López Obrador on the morning of Thursday, Sept. 9. “It’s a good budget.”

The president also said, “As far as the federal budget is concerned, it is quite balanced. It guarantees financing for all welfare programs, considers increases in pensions, considers maintaining welfare programs and compensating them with increases in line with inflation.”

He likewise made note of the budget’s inclusion of funds for projects like the airport in Tulum, oil refineries, highways, rural roads and for Santa Lucía Airport.