Evaluation System of Public Spending in Mexico in the Federal Budget Proposals 2018 and 2021: Advances and Reversals

Luis Ibarra ()

The Anahuac Journal, 2021, vol. 21, issue 1, 94-116

Abstract: One of the most important structural reforms, still pending, that Mexico should undertake in the next years is the public spending reform, including one of its main components, which is the way in which this spending is evaluated. To this end, I present some advances and deficiencies of the performance evaluation system (SED, by its Spanish acronym) for public expenditure in the federalbudget proposals (PEF, by its Spanish acronym) 2018 and 2021. The analysis is based on principal-agent model literature, where there may exist interest misalignment between the principal, that is, the citizens, and the agent, which is the government that is being «hired», through elections, by the citizens to fulfill economic growth and social inclusion objectives. At the end, there is a public policy proposal to incorporate simplicity, relevance, objectivity, incentivization and updatingprinciples to the SED.

Keywords: public expenditure; efficacy; efficiency; evaluation; Mexico. (search for similar items in EconPapers)
JEL-codes: H11 H40 H50 H61 O21 P43 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:amj:journl:v:21:y:2021:i:1:p:94-116

DOI: 10.36105/theanahuacjour.2021v21n1.04

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