The Treasury changes model and will now give its ‘wool’ to the states every month, instead of every quarter

The states of the country will receive monthly resources from the federal government as of August to face the economic crisis, reported the Ministry of Finance and Public Credit.

In a statement, the agency explained that the money will come from the Stabilization Fund of the income of the Federal Entities (FEIEF).

The FEIEF is the mechanism that allows the Government of Mexico to cover the differences between the shares in federal income observed that derive from the behavior of economic activity and what was programmed at the beginning of the year, the agency detailed in the document.

“With which it is guaranteed that said revenues of the states do not have any affectation despite the fact that there is a decrease in the federal participable collection,” the agency detailed in the document, “he added.

The Treasury explained that the transfer of resources will be monthly, instead of quarterly, in addition to that any decrease presented in the immediately preceding month will be covered immediately.

“(This) allows a better planning of the exercise of spending, while providing a flow of freely available resources to the states and municipalities to promote economic reactivation within their territories,” the agency detailed.

Last July, the Permanent Commission of Tax Officials approved the creation of the CIB / 3484 Trust, which will initially acquire 70 billion pesos through bank financing, in order to strengthen the Fund for Stabilization of Income of the Federative Entities (FEIEF).

See also  Covid-19: Many sufferers have atypical symptoms - health

Leave a Comment