Mexico has a “small government” to finance the needs of the population, owning only 17% of the Gross domestic product (GDP), which represents barely half of the average income of the member countries of the Organization for Economic Cooperation and Development (OECD), so it “cannot do things.”
This was expressed by José Ángel Gurría, former secretary general of the OECD, before the members of the Employers’ Confederation of the Mexican Republic (Coparmex) during the Meeting for Mexico 2021, when he pointed out: “You may feel that the government is very large And that goes everywhere, but Mexico has a small government, why? Because the government’s source of income is only 13% of the Gross Domestic Product (START) and if you add the oil you get to 17 percent ”.
Who was the Secretary of Finance and Public Credit with the President of Mexico Ernesto Zedillo, explained that the administration of Andrés Manuel López Obrador It has 17% of public income, “as one sixth of the national product of the Gross Domestic Producer to manage the expenses of health, infrastructure, health, education, water, security, the police, national guard, and the OECD It is at 34%, twice, ”Gurría questioned.
During his keynote address “Mexico in the post-pandemic world,” the former OECD secretary argued that this problem was exacerbated because President López Obrador and their respective Finance Secretaries, from Carlos Urzúa, Arturo Herrera and Rogelio Ramírez de la O, who They are responsible for fiscal matters, they refused to increase the debt during the Covid-19 crisis that would allow to amortize the impact on the economy.
“They do not want to increase the debt a lot and continue with their 17%, a small government, they cannot do things,” he warned, after he commented that the Mexican economy is immersed in recovering from its economic activity.
Reference-www.eleconomista.com.mx