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LatinNews Daily - 20 September 2021

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In brief: Mexico’s Coparmex criticises 2022 budget proposal

* Mexico’s leading private sector lobby Confederación Patronal de la República Mexicana (Coparmex) has made six recommendations to the federal government led by President Andrés Manuel López Obrador in relation to the 2022 budget proposal unveiled earlier this month. Coparmex praises the fact that there are no new taxes nor substantial increases on current taxes. However, it says that the budget should be adjusted to be “more realistic” and correspond to “social needs” rather than “government decisions”. Its recommendations include more support from institutions to promote the reactivation of the economy, which shrank 8.2% in 2020 due to the coronavirus (Covid-19) pandemic. It cites as an example the policies promoted by the now defunct Instituto Nacional del Emprendedor (INADEM), a decentralised public body linked to the economy ministry which supported the small and medium size enterprise (SME) sector. Coparmex also called on the government to contract more debt which it says in “key moments and in a reasonable form is positive”. It said that debt equivalent to 3.1% of GDP would provide necessary resources without affecting public finances. It also urges the government to diversify public investment beyond projects such as the Tren Maya railway, a flagship infrastructure project of the López Obrador government which will connect the Yucatán peninsula with the rest of south-eastern Mexico.