By KELIN DILLON
In response to the Mexican federal government’s proposed budget for 2022, experts across multiple sectors have expressed concern that the steep financial allocations to megaprojects will leave the nation with little maneuvering room should unforeseen contingencies arise.
“The budget has little room for maneuvering, and that room that we should use to stimulate the country’s growth has instead been committed to spending on government flagship projects,” said Pablo López Sarabia, research professor in the Department of Economics at the Tec de Monterrey University in Santa Fe.
Moreover, the projects in question, including the Dos Bocas refinery, Santa Lucía airport and Tren Maya, are unlikely to be profitable upon completion, said López Sarabia.
As over 83 percent of the budget must go to mandatory expenses such as pensions, debt, civil servant salaries and other matters established by law, the remaining 17 percent should be carefully considered in its allocation, he said.
With the majority of the available spending instead going to megaprojects, social programs and policies that could contribute to economic growth will now be left by the wayside.