Fiscal Deficit in Mexico.

Fiscal Deficit in Mexico

Between January and November of 2014, the federal government reported a deficit of 461.300 billion pesos, which is higher than the 262,900 million for the same period of 2013. The deficit reported in the romance report is 75% higher than the 262,900 million reported for the same period of 2013. That’s why in the past years, one of the priorities of the Mexican government has been the reduction of the fiscal deficit on the public sector in the country. All this due to the instability of prices in different products that the average Mexican consumes, caused by the never-ending and exaggerated public deficit that the nation suffers every year. In that context, factors like the inefficiency in tax collection and the recruitment of foreign companies compared to the low cost of a national business, have pushed developing countries like Mexico to overuse their money and create inflation on prices in order to pay their incomes and expenses to the companies that they owe.

Also, government debts can lead not only to problems of liquidity and solvency, but tax increases that discourage the consumption, private investment and economic growth in the long term. Because of that, the Mexican government started building the necessary infrastructure focused in local businesses, promising them mutual benefits. In conclusion, the Mexican population and the government are working together trying to fix this economic issue in the country, the first one by settling their debts on time and supporting local brands, and the second one approving reforms and new laws in order to increase monetary incomes.

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