Oct. 20 (Bloomberg) -- Mexico’s finance committee in the lower house of Congress approved the income portion of the 2012 budget with a wider deficit than President Felipe Calderon originally proposed.
The panel passed the 2012 budget with a deficit equal to 0.4 percent of gross domestic product yesterday while maintaining an estimated oil price of $84.9 a barrel.
Calderon had proposed a budget deficit of 36.7 billion pesos, or 0.2 percent of the country’s GDP, excluding investments in state oil company Petroleos Mexicanos.
The initiative approved yesterday, which will now go to the floor of the lower house, would decrease the official forecast for economic growth to 3.3 percent from 3.5 percent and change the forecast for the peso’s exchange rate to 12.8 per U.S. dollar from 12.2.
The bill also raises Mexico’s estimated oil production to 2.56 million barrels a day from a previous estimate of 2.55 million barrels a day.
The legislation would postpone the cancellation of a federal tax on gasoline sales, a portion of which is channeled to state governments.
The changes approved by the committee would give the government more than 80 billion pesos ($5.9 billion) of additional revenue next year, which would go toward education and farming programs, Sebastian Lerdo said yesterday in statements to reporters in Mexico City.
Calderon on Sept. 8 proposed total spending of 3.62 trillion pesos ($290 billion) for next year, an increase of 2.5 percent in real terms from 2011.
The lower house must approve the income portion of the budget today and the spending portion by Nov. 15.
--Editor: Jonathan Roeder
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