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Evaluation System of Public Spending in Mexico in the Federal Budget Proposals 2018 and 2021: Advances and Reversals

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  • Luis Alberto Ibarra Pardo

Abstract

One of the most important structural reforms, still pending, that Mexico should undertake in the next years is the public spending reform, including one of its main components, which is the way in which this spending is evaluated. To this end, I present some advances and deficiencies of the performance evaluation system (SED, by its Spanish acronym) for public expenditure in the federalbudget proposals (PEF, by its Spanish acronym) 2018 and 2021. The analysis is based on principal-agent model literature, where there may exist interest misalignment between the principal, that is, the citizens, and the agent, which is the government that is being «hired», through elections, by the citizens to fulfill economic growth and social inclusion objectives. At the end, there is a public policy proposal to incorporate simplicity, relevance, objectivity, incentivization and updatingprinciples to the SED.

Suggested Citation

  • Luis Alberto Ibarra Pardo, 2021. "Evaluation System of Public Spending in Mexico in the Federal Budget Proposals 2018 and 2021: Advances and Reversals," The Anahuac Journal, Business and Economics School. Anahuac University (Mexico)., vol. 21(1), pages 94-116, June.
    • Handle: RePEc:amj:journl:v:21:y:2021:i:1:p:94-116
    DOI: https://doi.org/10.36105/theanahuacjour.2021v21n1.04
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    More about this item

    Keywords

    public expenditure; efficacy; efficiency; evaluation; Mexico.;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • P43 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Finance; Public Finance

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