APPENDIX WITH ACTIONS IN THE AGREEMENT TO STRENGTHEN THE ECONOMY AND PROTECT THE FAMILY ECONOMY

  1. 1. Protect the family economy

MAINTAIN THE STABILITY OF PRICES IN THE BASIC FOOD BASKET

  1. The Price Group will align the various instruments of the state to reduce impact of gasoline price increase on the prices of other goods and services.
  2. Decree for the creation of quota tariffs for basic food products, to be used in the event of the detection of unjustified increases.
  3. Strengthen the government’s pharmaceutical policy to continue with the accelerated entry of generic drugs that are cheaper and of the same quality.
  4. Reactivation and strengthening of programs to support agricultural and marine diesel.
  5. The special treatment of diesel consumption by formal enterprises in the transport sector will be maintained, in order to prevent increases in the cost of this service.
  6. Constant monitoring by PROFECO and the Energy Regulatory Commission, to avoid unjustified price increases or abuses at gas stations.

Modernize public transport and facilitate urban mobility

  1. Strategy to modernize the mass transit infrastructure, through the Program of Federal Support for Mass Transit, by expanding coverage from 5 to 50 cities. 
  2. SEMARNAT will strengthen the implementation of the program for the conversion of public transport units to natural gas.
  3. Facilitate urban mobility:
  • Make “mortgage portability” more flexible for INFONAVIT members, in order to enable them to buy housing closer to their workplaces.
  • Encourage young people who do not currently contribute to INFONAVIT-but did so at some point and therefore have savings at the institution- to use these resources to obtain housing solution, such as: purchasing a new home, settlement an outstanding mortgage, improving or extending their homes, or increasing their mortgage.

SOCIAL SECURITY BENEFITS PACKAGE FOR PROTECTING THE FAMILY ECONOMY THROUGH THE IMSS

  1. The IMSS will present a social benefits package to protect the family economy, which includes: the expansion of daycare service, increasing education services at daycare centers no additional cost, improving sports and leisure facilities, as well as fair, low prices at IMSS stores.

COMPETITIVE CREDIT AND FINANCIAL INCLUSION

  1. Strengthen the Finance and Technology (Fintech) sector in order to reduce, through the provision of innovative, electronic financial services, the costs of credit and other financial services for the benefit of the entire population, particularly Mexicans who currently do not have access to them.

LABOR INCLUSION

  1. Promote the training of and links between PROSPERA grant holders and companies in the energy sector and between beneficiaries who received their elementary and middle school certificates through the Special Certification Program and productive sectors, through the National Productivity Council.

PROGRAM OF INFORMATION AND FACILITATION OF RETURN OF RESOURCES FROM THE RETIREMENT SAVINGS SYSTEM

  1. Accompaniment and support for Senior Citizens. More than 3 million Mexicans aged 65 and over have a Savings System for Retirement (SAR) account and have not withdrawn their savings. Most owners of these accounts are unaware of their existence. The Secretariat of Finance (SHCP), in conjunction with SEDESOL, the IMSS, CONSAR and AFORE, will conduct an information and search campaign , to enable the holders of these accounts to withdraw their resources if they wish. 50 billion pesos are available, which may be withdrawn by their holders.
  2. 2. ENCOURAGE INVESTMENTS AND EMPLOYMENT

NEW BOOST FOR INVESTMENT BY THE GOVERNMENT

  1. FONADIN will implement a strategy for the modernization and monetization of assets, in order to have additional resources for the construction of public works and infrastructure projects.
  2. Reallocation of 18 billion pesos in capital for development banks in order to strengthen and trigger lending in strategic sectors such as energy, infrastructure and telecommunications.
  3. Under the Public-Private Partnerships (PPPs) scheme, increased investment will be triggered for building infrastructure, such as hospitals, roads and schools. 
  4. Accelerate the development of Special Economic Zones, by purchasing the land on which they will be developed and promote 81 infrastructure projects with investments over the next 10 years. This scheme will strengthen employment and competitiveness in the regions that need it most.
  5. The participation of private and development banks will be encouraged to facilitate private investment in the improvement and expansion of the logistics chain for gasoline: production, storage and distribution. More infrastructure and better conditions of competition are essential to improving the prices at which fuels are sold.

NEW TAX INCENTIVES FOR INVESTMENT WILL BEGIN TO OPERATE IN 2017

  1. A simpler, more efficient tax scheme will be implemented for small and medium enterprises.
  2. A new tax incentive for research and technology development will come into effect.
  3. Accelerated depreciation will be renewed, to enable small and medium businesses to continue to apply immediate deductibility of 100% in 2017 and 50% in 2018.

CAPITAL REPATRIATION DECREE

  1. In conjunction with the productive sectors, a decree will be issued to promote the return to the country of Mexican investments abroad.

 

  1. Preserve economic stability

RESPONSIBLE FISCAL POLICY

  1. Tax efforts will continue to reduce fiscal dependence on oil revenue.
  2. Maintain the implementation of the Fiscal Consolidation Program. Resources will be used more efficiently and comply with the spending adjustment approved for 2017 of 190 billion pesos.
  • 10% reduction in salaries of top civil servants.
  • Reduce by at least 10 percent the 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.
  1. There will be a prudent, efficient management of public debt. The public deficit will be reduced in 2017 to stabilize the debt in relation to GDP and lower it in the following years.
  2. 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.
  3. 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.
  4. 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

  1. The autonomy of the Central Bank will continue to be guaranteed.
  2. 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 financial position of the Federal Government.

ROBUST FINANCIAL SYSTEM

  1. International reserves will continue as a result of the flexible credit line from the International Monetary Fund.
  2. Guarantees will be implemented to ensure that the financial system maintain adequate levels of capitalization.

STRUCTURAL REFORMS IN ACTION

  1. 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.
  2. Economic competition policies will be supported, to provide more people with access to more products and quality services at lower prices.
  3. The implementation of structural reforms in favor of the rule of law, transparency and fighting corruption will be accelerated.
  1. Preserve and strengthen the culture of legality and the rule of law
    1. The government, in conjunction with state and municipal governments, will promote measures aimed at promoting the culture of legality and formality.

The rule of law will be strengthened to fight corruption and increase transparency by strengthening the platforms for budgetary transparency and procurement.