Economic Package 2022: No Tax Increase, Focus on Three Ventures

Rogelio Ramírez de la O, Head of SHCP, announced that the 2022 economic package will be released on September 8 and will include a major investment for three main infrastructure projects: Maya Train, Refinery Dos Bocas and Santa Lucia Airport. Ramírez de la O also highlighted that the government will target tax evasion instead of raising taxes.

The Head of SHCP recognized that there has been progress when it comes to tax collection: “Mexico strengthened tax collection through administrative simplification strategies, as well as combating tax evasion, fraud and avoidance.” This new economic package will continue to focus on tax evasion. Considering the progress made in the past few years, the Ministry will continue operating under the same mission: improve their tax collection instead of raising taxes, as one of the main promises of President Andrés Manuel López Obrador during his campaign focused on not raising taxes.

Maintaining a stabilized public debt is a priority for Ramírez de la O, “The fiscal package is designed to keep the public debt stabilized and to maintain fiscal prudence. On September 8, we will present a balanced economic package between income and expenditure, (which will be) responsible, realistic.” Ramírez de la O highlighted that the strategy to maintain a balanced public debt is a priority for 2022. The plan for the economic recovery is to design a very well-organized plan to avoid increasing the country’s debt.

The proposed economic package will prioritize the three main projects from president Lopez Obrador’s administration: Dos Bocas refinery, Maya Train and Santa Lucia Airport, which will see a 57 percent increase in their budget. Finishing these three projects in time is a major priority for the Mexican government, as the president seeks to complete his three most emblematic infrastructure plans.

Ramírez de la O also announced the main focus of the economic package: “three pillars: social support for well-being, stability and soundness in public finances, as well as support for regional development projects.” The final version of the package should look very similar to what Ramírez de la O described, but minor changes can still be made before its official release.

Meanwhile, there is still confusion on how the federal government will use the US$12.18 billion Mexico received from the IMF. Ramírez de la O stated that the future of the funds “is being evaluated to allocate them to the payment of the debt that has the highest interest rates.”