Friday, July 31, 2020

Mexico City will reduce public spending by 50%

There will be cuts in stationery and telephony, not personnel, details the Government of Mexico City expects a drop of 20 billion pesos in revenue, so the government will reduce its current spending by 50% to guide it to programs and actions that will face on returning to normal after the health emergency due to the coronavirus.

An 8.3% drop in tax collection is due to a fall in various taxe revenues, such as the payment of tenure, public shows, sale of alcoholic beverages, payrolls, lodging and issuance of licenses, among others. In a video conference of the press, the capital’s president, Claudia Sheinbaum, explained that, foreseeing this situation, they decided to reduce current spending, such as stationery and cell phones, without affecting salaries or the dismissal of servers. “They have to do with the operation of offices, mainly administrative, that is where we are making the greatest decrease and without affecting public services in any way,” she said.

“It is a situation that normally occurs when there is an economic impact, in this case it is on a global level, which nobody expected. The pandemic hit from the most developed, richest countries to those with the least [monetary] resources. ” She also explained that the goal for this year is to reduce spending by 20 billion pesos more than budgeted.

The capital official released a list of 36 priority projects that will be maintained despite the economic repercussions of the coronavirus (Covid-19), among which stand out: health, mobility, security, housing, employment and infrastructure. Specifically, actions such as completing the Topilejo and Cuajimalpa hospitals; free medications; expansion and improvement of service in health centers; the beginning of the University of Health; the guarantee of 8 thousand students per year at the Rosario Castellanos Higher Education Institute; My Scholarship to Start program; School Supplies and Uniforms; eradication of violence against women program; the acquisition of 500 trolleybuses, 800 RTP buses and the comprehensive modernization of the Metro: lines 1 and 3, as well as the completion of Line 12 and electrical energy substations, among others.

Sheinbaum reiterated that until last April about 150 thousand people lost their jobs due to the health contingency due to the Covid-19 and did not rule out that in May the number increased, after the closure of some companies and establishments, for which she assured that “The objective is to work on the economic reactivation of the City.”

On another matter, the capital’s president announced that workers with non-operational activities who work in the public administration will remain at home until next August.

Source: El Universal

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