Article from Mexican Labor News & Analysis
Published by UE International.
Date published: February, 2016
Web version: http://www.ueinternational.org/Mexico_info/mlna_articles.php?id=239#1810
The Mexican economic situation continues to go from bad to worse with oil prices having declined dramatically, and the peso having fallen from 15 pesos to the dollar last February to almost 19 to the dollar a year later. While the government did increase taxes, it will still be receiving less tax income this year. Enrique Peña Neito’s government and the Mexican Congress have therefore cut the federal budget affecting virtually all government departments.
The budget cuts amount to 135 billion pesos or 8.8 billion U.S. dollars. The Secretary of Finance, Luis Videgaray Caso, has called for a “mega-cut” calls for a 30 percent reduction in administrative personnel, meaning that many white collar workers will have to be laid off. The deepest cuts will be to PEMEX, the Mexican Petroleum Company, and will affect both managers and workers.
The largest cuts, expressed in billions of pesos will be as follows: Secretary of Communications and Transportation, 11,820; Secretary of Public Education, 7,800; Secretary of Agriculture and Food, 7,188; Secretary of Social Development, 6,400; the National Water Commission, 3,750; Secretary of Health, 3,339; Secretary of the Interior, 2,000; Secretary of Finances, 1,900; Institute of Social Security for Unions of Workers of the State, 1,500; and, Secretary of Defense, 1,200.