Carstens declares Mexico to be in ‘financial shock’

In statements before the Senate and the PAN congressional delegation, Finance Secretary Agustín Carstens declared that Mexico’s public finances were facing the worst “financial shock” in 30 years, and that the 2010 budget would have to solve a budget gap of Ps. 300 billion.  Asked about tax increases, Carstens said, “We’ll see on September 8,” when the government presents its budget proposal. Speaking to reporters during his state visit in Colombia, President Calderón said, “The truth is that in order to close the gap in public finances we need to reduce spending or increase public revenues or allow a deficit.… It seems to me that we need to find the best combination of the three alternatives.” (Universal 8/12, Reforma 8/13, 8/15)

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