The delivery of scholarships and public works are aligned with the prudent management of public finances: SHCP

Rogelio Ramírez de la O, Secretary of Finance and Public Credit (SHCP)He affirmed that the investments destined to the distribution of scholarships, social programs and infrastructure projects are made in line with a prudent management of public finances.

“All the actions (investment in social programs and infrastructure) we have been carrying out with prudent management of public finances, as well recognized by the Economic Study Mexico (of the OECD) has distinguished itself by maintaining solid public finances and an innovative management of the debt”, commented the government official of Andrés Manuel López Obrador.

The prudent management of public finances is reflected in the reduction of Mexico’s public debt, since it went from 51.7 percentage points of gross domestic product in 2020 to 50.1 percent at the end of 2021, explained Ramírez de la O.

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Mexico is on the way to becoming a more prosperous economy, as it is strongly integrated with North America and has a solid macroeconomic framework and stability, according to the SHCP head.

Ramírez de la O said it is essential that Mexico’s economic growth help the most vulnerable groups and reduce social disparities.

“The Mexican government has launched a comprehensive strategy, which ensures greater economic development and prioritizes social demands,” he said during the presentation of the OECD Economic Survey 2022: Mexico.

The Mexican economist explained that the strategy includes two priority axes: One is investment in infrastructure projects and the deployment of a social and universal protection network to trigger economic growth and integrate the most backward regions in Mexico. And the second is to maintain solid and healthy public finances.

“To compensate for the inequalities that exist in Mexico, we are investing in social programs focused on groups such as the elderly, boys and girls, as well as the disabled,” said Rogelio Ramírea de la O.

There are more than 23 million beneficiaries of some social program, as well as reforms to guarantee adequate working conditions, as well as a dignified retirement, such as the reform of subcontracting and the reform of the pension system, which ensures a guaranteed minimum pension, he pointed out.

“Mexico is guaranteeing important investments to promote the development of the most lagging regions where it is expected to configure the labor market and improve the welfare levels of the population,” he commented.

In 2022, we will reach a public investment amount of 3.1 percent of gross domestic product, which is the highest in the last 10 years, explained the head of the SHCP.

“Among these projects, the Tehuantepec Isthmus Interoceanic Corridor stands out, which will connect the Gulf of Mexico with the Pacific Ocean to facilitate international trade routes,” he said.

He added that the project includes the modernization of the ports of Coatzacoalcos in the Gulf of Mexico and Salina Cruz in the Pacific Ocean, as well as the railway, road and fiber optic network that connects them.

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“In addition, it contemplates the development of industrial parks to generate permanent industry poles, warehouses and economic services in the region,” he reported.

“We are modernizing customs to reduce cargo transport waiting times and streamline the supply chain,” he concluded.