Administration Struggling with 1999 Budget Proposal Because of Global Financial Crisis & Weak Oil Market

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President Ernesto Zedillo's administration has encountered significant difficulties in drafting its proposed 1999 budget because of the turmoil in global economic markets and the continuing weakness in crude-oil prices. By law, the administration must present its budget proposal to the Chamber of Deputies by mid-November.

In testimony before the Chamber of Deputies, Finance Secretary Jose Angel Gurria Trevino said the Secretaria de Hacienda y Credito Publico (SHCP) has not decided whether to propose new taxes to enhance the government's revenues but he pledged to maintain strict discipline in public finances.

Gurria's comments echoed earlier statements by deputy finance secretary Santiago Levy, who told reporters that the government's 1999 budget proposal would be "austere."

Administration & Congress announce cooperation accord

Mexico's economic instability has been fueled by disagreements between the executive branch and members of opposition parties in Congress regarding economic proposals offered by President Zedillo. The main point of disagreement has been the proposal to …