1996-11-14 Local Press - ECONOMY
Article Index
ECONOMY
Government Delays New Pension System for Lack of Funds
The government decided to delay the full implementation of the new private pension system six months (until July 1997) due to a lack of money to put it into place. After preparing its 1997 budget, the government realized that it does not have the 35 billion pesos that would have been necessary to invest in 1997 if the program were to start as planned on January 1. It is rather ironic, because in pushing the new program in December 1995, the government said that it "is a necessity that can not be delayed" - arguing that it was the key policy tool that was supposed to increase domestic savings in Mexico. With the delay, the government will invest I 8.59 billion pesos into the new pension system in 1997 (instead of 35 billion). (La Jornada, 10 November).
Interest Payments
In 1997, 42% of the tax revenues received by the federal government, or 119.69 billion pesos (approximately $15 billion dollars) will go toward payments on the public debt. In real terms, this represents a 12% increase over the amount paid to service the debt in 1996. Meanwhile, tax revenues declined from 10.59% of GD? in 1994, to 9,5% in 1995, and 8.61% in 1996- (La Jornada. 11 November).
Businesses Respond to Economic Plan for 1997
In response to the announced economic program for 1997, business sectors called on the government to take measures to ensure that growth is more equally distributed among exporters and producers for the domestic market, and to review its trade strategy in order to end the disadvantages faced by Mexican producers. The groups complained of severe inequalities both among economic sectors and within them. Exporters are faring better than other sectors, but only a small percentage of the largest exporters are really benefiting. Micro, small and medium sized businesses have little or no access to export markets. Meanwhile, Hector Larios Santillan, the Coordinating Business Council (CCE) estimated that private investment in 1997 will reach 17 billion dollars, although domestic businesses are expected to face another difficult year. (El Pinanciero, 11-12 November).