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Mexico’s Money Man Feels Budget Crunch as Mega Projects Come Due

  • Finance Minister Rogelio Ramirez de la O speaks in interview
  • Despite high costs, Mexico won’t surpass 50-51% debt to GDP
Rogelio Ramirez de la O, Mexico’s finance secretary, during the Association of Mexican Banks (ABM) convention in Acapulco, Guerrero state, Mexico, on Thursday, March 24, 2022.
Rogelio Ramirez de la O, Mexico’s finance secretary, during the Association of Mexican Banks (ABM) convention in Acapulco, Guerrero state, Mexico, on Thursday, March 24, 2022.Photographer: Alejandro Cegarra/Bloomberg
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Mexico’s finances are feeling the pressure from funding cost increases at several mega-infrastructure projects promoted by President Andres Manuel Lopez Obrador as deadlines for their completion cluster together toward the end of his term, the finance minister said.

Nonetheless, the government has room to maneuver and won’t raise its debt to gross domestic product ratio above a range of 50% to 51% in next year’s budget, Finance Minister Rogelio Ramirez de la O told Bloomberg News in an interview. Today, that figure stands at 48.9%. Higher-than-expected tax revenue and falling fuel subsidy costs amid a drop in gasoline prices are helping, he said.