The Agreement to Strengthen the Economy and Protect the Family Economy involves four lines of action.
The third axis of the Agreement is designed to maintain a responsible fiscal policy.
A. Tax efforts will continue to reduce fiscal dependence on oil revenue.
B. Implementation of the Fiscal Consolidation Program will continue. Resources will be used more efficiently and comply with the spending adjustment approved for 2017 of 190 billion pesos.
- 10% salary cut for top civil servants.
- Minimum of 10 percent reduction of support provided for fuel, cellular telephony and travel expenses of top civil servants. The savings generated by the austerity measures will be allocated to social infrastructure for the benefit of the most vulnerable groups in our country.
C. Public debt will be handled sensibly and efficiently. The public deficit will be reduced in 2017 to stabilize the debt in relation to GDP and continue to be lowered in the following years.
D. The Tax Certainty Agreement will remain in force: there will be no new taxes or increases to existing ones; on the contrary, there will be more incentives and tax benefits for various economic sectors.
As a result of the responsibility of the Economic Package for Fiscal Year 2017, a primary surplus will be achieved for the first time in eight years.
F. The implementation of the PEMEX Business Plan will continue as a clear, responsible and innovative way to strengthen this great productive state enterprise.
Autonomous monetary policy
G. The autonomy of the Central Bank will continue to be guaranteed.
H. The income corresponding to the amount of operating surplus which the Bank of Mexico declares to the Federal Government will continue to apply, in terms of the law, to improve the fiscal balance in the following areas:
- At least 70% to the depreciation of the Federal Government’s public debt engaged in previous fiscal years and the reduction of the amount of funding needed to cover the budget deficit, or a combination of both concepts, and
- The remaining amount will be used to strengthen the Budget Revenue Stabilization Fund or increase the assets for strengthening the Federal Government’s financial position.
Robust financial system
International reserves will continue as a result of the Flexible Credit Line from the International Monetary Fund.
J. Guarantees will be implemented to ensure that the financial system maintains adequate levels of capitalization.
Structural Reforms in Action
K. The implementation of structural reforms will continue to progress according to specific timetables for each, so that they will translate into higher productivity, investment and jobs.
L. Economic competition policies will be supported, to provide more people with access to more products and quality services at lower prices.
M. The implementation of structural reforms in favor of the rule of law, transparency and fighting corruption will be accelerated.