Mexico - 07

Mexico: Pemex Faces Reality: Budget Cuts and Their Political Implications

On 29 February newly appointed Pemex CEO Jose Gonzalez announced that the company’s 2016 budget will be cut by 100bn pesos to 378bn pesos, some 21% less than the 478bn pesos the Chamber of Deputies originally allocated. The measure had already been disclosed on 17 February by Secretary of Finance Luis Videgaray as part of a broader plan to cut total federal expenses by $123bn, but the extent of the hit to Pemex did not become official and clearer until last week.

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