**Economic Adjustments Needed Due to Unsustainable Budget Deficit, According to Expert**
As the fiscal year 2025 approaches, Mexico faces an unsustainable national budget deficit that calls for economic adjustments. Dr. Ismael Plascencia López, an economist specializing in regional development, emphasizes the need for changes due to the heavy expenditure on social programs during the current administration. This situation has left key areas like healthcare and security facing reductions in funds.
Dr. Plascencia explains that the imbalance stems from prioritizing social programs over infrastructure development. As a consequence, private investment has been insufficient, leading to a lack of production, jobs, and tax revenues. He also points out that the challenges faced today are a result of the socio-economic shifts during President Andrés Manuel López Obrador’s tenure, following voter dissatisfaction with previous administrations.
The proposed 2025 federal budget suggests significant cutbacks in health and security funding as part of the necessary economic adjustments. Dr. Plascencia highlights the importance of a fiscal reform to stabilize the economy, but cautions against turning such reform into a form of “fiscal terrorism”.
Drawing attention to tax collection issues, Dr. Plascencia notes that the rich avoid taxes while the poor cannot afford them, placing an undue burden on the middle class. Addressing the informal economy is also crucial for broadening the tax base and ensuring equitable contributions to government revenues.
**Secondary Article: Reactions to Budget Adjustments and Economic Measures**
Recent discussions surrounding Mexico’s proposed 2025 budget have elicited a range of responses from various stakeholders. The local business community in Tijuana, for example, has expressed concerns over potential tariff threats and the impact on trade. Additionally, businesses in the region are calling for improved collaboration with international suppliers, particularly from China, to sustain industrial productivity.
In contrast, local governments, such as the Tijuana municipality, are considering property tax increases to address fiscal issues at a more regional level. Urban developments and luxury condominiums are particularly targeted for these hikes.
Despite these fiscal challenges, the education sector remains a priority, with ongoing efforts to expand school facilities in densely populated areas. Furthermore, discussions around sustainability and infrastructure improvements continue to be significant topics as Mexico prepares for these sweeping economic adjustments.
As these economic concerns unfold, residents and officials alike are also reminded of community safety and environmental issues, such as the importance of reducing reliance on wood-burning heaters in rural areas during the winter to prevent potential health hazards.