Mexican President Promises Surplus in 2019 Budget Proposal

Mexican President Andres Manuel Lopez Obrador (AMLO) on Saturday sent Congress his 2019 budget plan, which includes more spending on social programs and infrastructure, while still preserving the fiscal framework established by his predecessors.

His administration expects this year’s surplus to be about 0.8%. The new administration also announced it will boost Pemex 2019 budget to US$23bln, which is 14% increase from 2018 with a focus on already producing fields in shallow waters and onshore to reduce risks.

AMLO has long promised to pay for increased spending on pensions, education, and infrastructure by a cost-cutting campaign that many investors suspect is unfeasible.

AMLO roiled markets even before taking office by canceling a partially-built Mexico City airport, sending the peso, stocks, and bonds tumbling.

Source: Bloomberg