BY ANTHONY HARRUP
MEXICO CITY—Higher public and social investment in Mexico’s 2014 budget should help boost economic growth next year, Finance Minister Luis Videgaray said Thursday.
Mr. Videgaray said at a news conference that the 4.5 trillion peso ($346 billion) budget, which the lower house of Congress gave final approval to early Thursday, raises government spending by 8.8% from 2013 levels. Public spending on infrastructure is expected to be 14% higher, including a more-than-50% increase in investment for communications and transport.
In response to the economic slowdown this year, when gross domestic product is expected to grow just 1.2%, the Congress approved a fiscal deficit for next year equivalent to 3.5% of gross domestic product. This includes financed investment at state oil monopoly Petróleos Mexicanos for 2% of GDP. This year’s deficit is expected to be around 2.4% of GDP.