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Public Spending in Mexico: How to Enhance Its Effectiveness


  • Bénédicte Larre
  • Marcos Bonturi


Public sector reforms and a refocusing of spending, partly through privatisation, have created a leaner and more effective government in Mexico. Primary expenditure, at around 18 per cent of GDP in 1999, is less than half the average for the OECD. At the same time, there are important spending requirements to create the basis for strong sustainable growth over the medium term. The backlog in basic infrastructure is considerable and areas such as education and health will require a steady expansion of budget resources. Specific measures to fight poverty are also needed. Inadequate tax resources and a heavy reliance on volatile oil-related revenue have been important factors impeding the development of essential public programmes. In this respect, given the sizeable marginal economic and social benefits of increasing spending in the above areas, it would be appropriate to raise the low tax-to-GDP ratio over the short to medium term. It is also essential that public spending be ... Les réformes du secteur public et le recentrage des dépenses, en partie grâce aux privatisations, ont permis d’alléger l’administration publique au Mexique et de la rendre plus efficace. Les dépenses primaires représentent 18 pour cent du PIB environ en 1999, moins de la moitié de la moyenne de l’OCDE. En même temps des dépenses importantes doivent être engagées pour établir les bases d’une croissance forte et durable à moyen terme. Il y a des carences considérables au niveau des infrastructures de base; et dans des domaines, tels que l’éducation et la santé, il faudra que les ressources budgétaires augmentent régulièrement. Il faut aussi prendre des mesures spécifiques pour combattre la pauvreté. Des ressources fiscales insuffisantes et une forte dépendance à l’égard des recettes pétrolières ont constitué des freins importants au développement de programmes publics essentiels. A cet égard et au vu des avantages marginaux économiques et sociaux considérables qui résulteraient ...

Suggested Citation

  • Bénédicte Larre & Marcos Bonturi, 2001. "Public Spending in Mexico: How to Enhance Its Effectiveness," OECD Economics Department Working Papers 288, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:288-en

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    References listed on IDEAS

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    Cited by:

    1. Fabrice Lehoucq & Gabriel Negretto & Francisco Javier Aparicio & Benito Nacif & Allyson Lucinda Benton, 2005. "Political Institutions, Policymaking Processes, and Policy Outcomes in Mexico," IDB Publications (Working Papers) 3354, Inter-American Development Bank.
    2. Fabrice Lehoucq & Gabriel Negretto & Francisco Aparicio & Benito Nacif & Allyson Benton, 2005. "Instituciones políticas, procesos de diseño de políticas y resultados de las políticas en México," Research Department Publications 3205, Inter-American Development Bank, Research Department.
    3. Fabrice Lehoucq & Gabriel Negretto & Francisco Aparicio & Benito Nacif & Allyson Benton, 2005. "Political Institutions, Policymaking Processes, and Policy Outcomes in Mexico," Research Department Publications 3204, Inter-American Development Bank, Research Department.

    More about this item


    dépense des administrations publiques; fiscal transparency; gestion publique; government expenditure; Mexico; Mexique; public management; transparence budgétaire;

    JEL classification:

    • H0 - Public Economics - - General
    • H1 - Public Economics - - Structure and Scope of Government
    • H4 - Public Economics - - Publicly Provided Goods
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems


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