To achieve a fiscal adjustment that does not imply cuts that compromise the provision of public goods and services, it is necessary to consider a tax reform that complements the Sheinbaum government’s efforts to combat tax evasion and avoidance, said the Mexican Institute for Competitiveness (IMCO). ).
The research center recalled that a few days after the presentation of the 2025 Economic Package, the government faces the challenge of correcting the imbalance between income and expenses of the public sector through fiscal consolidation.
In the document “Treasury in sight for the third quarter of 2024”, the IMCO indicated that to improve the sustainability of public finances and expand fiscal space so that the government has sufficient resources to implement public policies that contribute to development and economic growth, as well as the well-being of the Mexican population, it is necessary to expand the fiscal space of the public sector.
He explained that Sheinbaum’s administration must adopt a comprehensive approach that combines policies aimed at improving revenue collection and optimizing public spending.
In this way, the government’s fiscal space will be expanded; that is, its ability to increase spending without compromising the stability of public finances.
Among these measures are reviewing the collection waivers incurred by the government for fiscal stimuli, treatments and special regimes in the payment of federal taxes and focusing social programs so that they benefit only the people who need them most.
Likewise, the IMCO proposed reorienting spending towards infrastructure projects that boost long-term economic growth and that, in doing so, influence the collection of tax revenues.
Follow us on Google News to always stay informed
Get inspired, discover and share. Follow us and find what you are looking for on our Instagram!
