Mexico - State-Level Public Expenditure Review : The Case of Guanajuato
This Public Expenditure Review (PER) examines the situation in the State of Guanajuato, Mexico, where striking contrasts prevail in both its private, and public sectors. While its private sector has attracted both domestic, and foreign enterprises,...
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| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/07/1990720/mexico-state-level-public-expenditure-review-case-guanajuato http://hdl.handle.net/10986/15395 |
| Summary: | This Public Expenditure Review (PER)
examines the situation in the State of Guanajuato, Mexico,
where striking contrasts prevail in both its private, and
public sectors. While its private sector has attracted both
domestic, and foreign enterprises, from an economic and
social point of view, current private sector growth is not
as labor intensive as the declining sectors, and
international investments have not yet generated full,
complementary support to small firms, which are typically
more labor intensive. Moreover, poorer regions away from the
industrial corridor, lack relevant education, and transport
connections, to allow the population access to steady
employment. The State however, has not yet planned for an
economic growth strategy, with the corresponding public
policies. Interestingly, the State's public sector has
exceptionally competent management, with no deficits,
excellent credit ratings, and creative use of private sector
participation in delivering public goods. However, education
coverage at the secondary, and tertiary levels is one of the
lowest in the country. Thus, the strategy for public
spending over the next five years, will expand educational
coverage at the secondary level, make adult education
available, improve transport connections and access to
housing for the poor in the urban-industrial corridor.
Furthermore, the State will need to increase current
resources, through a reform of the National System of Fiscal
Coordination, and/or introduce a payroll tax, explicitly to
pay for new programs. Both options give the State more
control over its revenue. Health care coverage should be
ascertained, and, a plan to upgrade, and build health
facilities should be developed. Guanajuato should expand
infrastructure, through good regulatory framework for
private-sector operators, and, a program of mortgage (or
leasing) financing of buses should improve public transportation. |
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