Pena Nieto Gets Mexico Central Bank Boost After Budget Cuts

04/25/15 Bloomberg

finance-market_dataThe Mexican government will receive 31.4 billion pesos ($2.1 billion) in special revenue from the central bank, allowing a spending boost as falling oil prices prompt budget cuts. President Enrique Pena Nieto’s administration will propose channeling the funds to joint infrastructure investments with the private sector next year, the Finance Ministry said in a statement today. The revenue comes from the central bank’s 2014 operational surplus. Mexico’s government, which gets a third of its revenue from oil, is cutting spending after a 46 percent decline in the price of crude since June. After paring this year’s outlays by 124.3 billion pesos, or 0.7 percent of gross domestic product, Mexico will reduce spending by an additional 0.7 percent of GDP next year, the Finance Ministry said March 31.

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