SHCP denies that resources from Afores, IMSS, ISSSTE and Infonavit will be used for public spending

The Ministry of Finance and Public Credit (SHCP) denied that the savings in the outsidereserves from the Mexican Institute of Social Security (IMSS), ISSSTE and Infonavit will be taken to be used in the public spending.

The assertion is made after the Chamber of Deputies approved the changes so that the Budget Revenue Stabilization Fund (FEIP) can be nurtured through the budgeted resources that are not spent for financial cost, as well as by the contribution by the Ministry of Finance consisting of financial assets.

“In this operation, it will continue to apply the regulations of the Federal Public Administration and those on State Productive Companies and Parastatal Entities. Namely, the Ministry of Finance may not, under any circumstances, exceed the debt ceiling approved by the Congress of the Union and it must contribute to the budget balance; it will not be able to use financial assets of public companies or other organisms for this purpose”, commented the dependency in charge of Rogelio Ramirez de la O.

The comments are given after doubts and criticisms were generated regarding what financial assets could use the dependency, where the concerns were mainly that they would be used, for example, the savings managed by the Aforesas well as other similar ones, to solve public spending.

In this sense, the Treasury said that the reform has nothing to do with government spending.

“Los retirement savings fundsreserves of the IMSS, ISSSTE, Infonavit, pension bonds and shares of the Siefores do not apply to this law, since these resources are covered by the purposes provided in the legislation corresponding to these entities, and the modification only includes the use of assets of the Federal Government,” said the SHCP.

The changes to Federal Budget and Treasury Responsibility Law approved last Friday in San Lázaro seek that the Budget Revenue Stabilization Fund may have more sources of income to be nurtured, since it is currently capitalized from the surplus income that the Government may obtain.

“Currently, there is only the surplus income to feed it but, before the stabilization funds, those surpluses go to three other items that are above the FEIP, so it is very difficult to put money into it,” he previously told The Economist Gabriel Yorio González, Undersecretary of Finance.

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