Mexico: Crisis will impose cuts on 2009 budget

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The Mexican budget for 2009 will be re-evaluated due to the financial crisis in the US. The main reason is the review of the economic growth for next year, which will be less than expected.

The reductions on the budget will vary between 4% and 5%, though the government has not yet analyzed the sectors that will suffer cuts. Defense is among the first on the list.  

The cut in the budget was expected since the oil prices will not close the year as expected by the Ministry of Economy. The increase in budget expenditure was US$ 270 billion before the financial crisis.

The Mexican President, Felipe Calderon, will have more reasons to complain with the cuts imposed by the Parliament. Aiming at re organizing Pemex, and opening its capital for private investors, the financial crisis and the necessity to review oil consumption and exportation, Calderon will see the opposition to his plan increase considerably.