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GEM spends a lot and bad public resources: IMCO
December 10th, 2019
While the government of the State of Mexico seeks that the Local Legislature authorize the contracting of new financing by 2020 and a plan to launch a policy of "tax terrorism" against its captive taxpayers, the Mexican Institute for Competitiveness (IMCO) He revealed that the GEM, not only spends a lot but spends badly, is a bad administrator and generally does not respect what Congress approves.
In the report “Accounting creativity: the art of deception. Expenditure Exercise Information Index (IIEG 2019) ”, published on Tuesday by the IMCO, it is reported that 10 years after the approval of the General Law of Government Accounting, all state governments fail to comply with it, including the state of Mexico, whose level of compliance with the maximum accounting standard is 58.3%, well below the national average of "government accounting compliance", which is 67%.
According to the IMCO, the three states with the highest compliance in their government accounting report are Puebla (96%), Sonora (94%) and Campeche (91%); while those with less compliance are Tlaxcala (56%), Michoacán (37%) and Mexico City (35%).
The state of Mexico is in a still mediocre position in compliance with the application of accounting standards, with 58%, almost the same as the performance shown by Tlaxcala, with 58%; Baja California with 57% and below Nayarit, with a rating of 59%.
The IMCO warns that “reporting the expenditure correctly does not mean spending well”, since Sonora, for example, has a high level of compliance in government accounting (94%), however, the variation between what is budgeted and exercised in 2018 was 43%, he says.
The report highlights that in 2018, a total of 17 federal entities varied their budget by more than 15%. In the case of the State of Mexico, the general variation was 17% between what was budgeted and what was actually spent. However, if you look more closely, it turns out that there are items that generally shot up last year, such as advertising spending that doubled or grew by 121%, compared to what was scheduled; while in infrastructure I also spend 11% more.
In contrast to the latter, Edomex in 2018 spent 4% less than what was programmed in salaries, but also 15% less than what was originally approved to be used for “basic services”.
Regarding the compliance of the Alfredo del Mazo government in the 2018 budget, in aspects that the Government Accounting Law itself marks, the IMCO database itself, indicates that the budget compliance was only 47.5%, the compliance 67.9% accounting and 100% programmatic compliance.
Translator: Martín Caballero