4 Governors form a common front against AMLO’s Fiscal Pact.

SALTILLO, Mexico (Agencies) – The rebellion against the Fiscal Pact gained more strength yesterday, after four Governors of the states that contribute the most resources to the Federation formed a common front to pressure for a change in the formula for the distribution of federal resources, which has been in effect for 40 years.

The agreement was reached in Saltillo at the fifth meeting between the governors of Nuevo Leon, independent Jaime Rodriguez, Coahuila, PRI member Miguel Riquelme, and Tamaulipas, PAN member Francisco Garcia Cabeza de Vaca, to coordinate actions against the coronavirus.

The Governor of Jalisco, Enrique Alfaro, of Movimiento Ciudadano, joined their statement shortly after and has also demanded a review of the Fiscal Pact and yesterday agreed to join the search for a new agreement with the federal government.

In yesterday’s meeting, the leaders analyzed both the issue of the coronavirus crisis and the lack of resources from the Government of Andres Manuel Lopez Obrador to address the problem, as well as the Federal Pact and its inequitable distribution.

“(And) that they do not tell us (the Federation) what they already sent us to say, that it is not time to review the Pact,” said Riquelme. “We know that, and we will do it in due time, but the work starts today.” (SIC)

It was agreed that the state treasurers would hold a virtual meeting on April 21 to have a first proposal on May 1, when the seventh meeting of the governors is scheduled.

The idea of revising the Fiscal Pact began to take shape since the previous meeting between the three leaders, held April 10 in Monterrey. However, it was only yesterday that it was agreed to begin a technical analysis.

“The Fiscal Coordination Law is obsolete,” said Garcia Cabeza de Vaca, who pushed for the agreement to begin the review. “It is a law that is 40 years old, and we are going to put our Finance Secretaries to analyze the possible options to see if there are modifications that would allow us to have greater (tax) powers. “Or that the formula be modified to face part of the responsibilities that have been given to the States without giving them a budget.”

“El Bronco,” who last week said that because of the Covid-19 pandemic, it was not the time to propose changes to the agreement, now points out that the Federation is unfair to the States, particularly those in the North.

According to an analysis by Movimiento Ciudadano, with the Pact in effect since 1980, Nuevo Leon receives 17 cents for every peso it contributes to the Federation, while Coahuila receives 16 cents and Tamaulipas receives 32.

“We are not fighting with the Center (federal government),” said the Governor of Nuevo Leon, “but let´s see if they can bring “the dough.”

As for the crisis over Covid-19, the leaders claimed that they have spent some 1.8 billion pesos of their own on the pandemic and have not received federal support, in addition to the fact that there is no federal aid plan to maintain sources of employment.

“Here in Nuevo León, we have already invested almost a billion pesos in this process (for Covid-19), and we are going to have to change our construction projects”.