Tax reform falls to the next government: Treasury

The economist considered that there is still room to collect and make efficiency improvements for taxation, facilitate the system and give it more transparency, but this will depend on the economic program presented by the next administration.

“There are many ways to finance spending, many sources of income that a government has, the optimal thing is what is happening right now, there is a certain political agreement on what the spending should be, and what the basic programs should be, if there are any. an agreement on the spending side, the financing part is resolved technically,” said the official in his presentation Perspectives 2024 and public finances.

Heading into the presidential elections, the candidates agree on carrying out a tax reform, in the case of the candidates Xóchitl Gálvez and Claudia Sheinbaum they consider it necessary, but not in the first years of government. The candidate, Jorge Álvarez Máynez, proposes a tax reform to tax assets in the first years of the new government.

This six-year term there was no substantive tax reform, but there were changes in rules and judicial matters at the beginning of the government to strengthen tax collection.

Deficit will be diluted

The chief economist ruled out that the level of public debt is a problem for Mexico.

“Mexico in terms of public balance, does not have a much higher deficit than other Latin American countries, nor other emerging countries, in fact, what we are doing is occupying a fiscal space that was created during the pandemic, Mexico decided not to to have such a strong fiscal impulse, and that saved us fiscal space that we can take advantage of now,” he said.

Regarding the fact that the difference between public spending and income will reach 5.9% of GDP this year, its highest level on record, he explained that it should not be assumed that we will have deficits every year or of this magnitude, and that they will eventually be diluted.

“A deficit is when in a year, spending is greater than income, that is ‘accounting’ what happens, that difference has to be financed, it is generally financed with debt, but that can happen once, and it does not have to be financed. happen every year, it’s like you when in one year you need to make an investment, the next year you stop doing it, and everything returns to normal,” he explained.

“Eventually these deficits will be diluted because the investments and expenses are resolved, and if it were the case that this gap remains, it will be decided how to finance it. Mexico can get into debt if it wants, and it is not that it is bad when it is used for investment that generates returns in the medium and long term, it is good, there is an aversion to debt, it should not be the case, if a corresponding level of debt is justified With perspectives, it is okay to take on debt,” Mariscal added.