Tax reform must be accompanied by a better spending practice: the analysts

Analysts agreed that the potential fiscal reform this government will implement, which is expected to begin to take shape after the mid-term elections in June, should be accompanied by better public spending exercise.

“Yes, reform is necessary. However, we are faced with two problems: not only is the low income, but we also have the problem of bad spending.” Mariana Campos, from Mexico City, Evalia said, “It is necessary to discuss tax reform, but it is the decisions made by the executive in matters of public spending. The burdens placed on the treasury are also very worrying. “

In this sense, Adrián García, a researcher at the Center for Economic Research and Budget (CIEP), has pointed out that tax reform can help combat inequality only if the resources obtained are allocated more to areas such as health, education and security.

He noted that although resources can be obtained through improving the efficiency of the SAT, a comprehensive financial reform is needed that goes further in order to finance existing projects, as well as spending in the area of ​​pensions. Which is expected to continue to increase in the coming years.

You can do something without raising or imposing taxes, and improving tax administration, for example, last year tax revenues were not affected by this, despite the economic crisis; However, more in-depth tax reform is needed to obtain significant resources to help fund these issues, as well as improve public spending.

In recent days, the first meeting of the Tax Transformation Working Group took place in the House of Representatives. In this table, they discussed spending requirements and important issues that must be addressed, such as health, education, investment, security, the welfare system, and guarantees for development banks.

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Tags Resources

Analysts agree that a factor that could help with better spending is the classification of resources obtained through taxes, such as the Special Tax on Production and Services (IEPS).

“In reform, mechanisms must be created to ensure that resources are allocated to what they should go to, for example, tagging resources. If new taxes are created, they should be categorized for specific purposes,” noted Mariana Campos.

He added that the danger is that if it is not classified, it can be “used or wasted” on infrastructure projects that are not well planned, whose suitability in the economic and social spheres has not been proven and that have been called into question. With regard to its environmental impact, as well as the priority projects of the current administration.

This is the big challenge, however, it is very important for the government to have better income and income. The discussion should be very serious, and it must include many issues. “

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