As wages for high government officials will be cut to half and benefits for members of Mexico’s public administration will be reduced, it is estimated that 2019’s economic package will generate savings of up to 132 billion pesos, which represents an 11% of the chapter 1000 for personal services from the Expenditure Budget of the Nation (PEF).
According to the Savings and Budget Reallocation Plan developed by the financial management team of the president-elect Andrés Manuel López Obrador (AMLO), the austerity measure will only be applicable for the president himself, as well as high officials making more than a million pesos a year.
The measures will cover nine echelons from levels G to O, which includes secretaries of State, undersecretaries, major officials, heads of unit, general directors, deputies, and department heads. Liaison and operation staff will not be included.
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