Calderon’s ‘Conservative’ Budget Seeks Deficit Cut

Mexican President Felipe Calderon sent congress a 2011 budget that seeks to narrow the deficit and keep spending increases below the pace of economic growth. The proposal sets up a potential battle with lawmakers pushing to unravel a tax increase approved last year.

The government’s 2011 budget proposal aims to raise spending 2.3 percent in real terms to 3.35 trillion pesos ($257 billion), according to a Finance Ministry statement late yesterday. The plan, which assumes economic growth of 3.8 percent, includes a 13 percent increase in security spending as Mexico steps up its battle against drug cartels.