By Michael O’Boyle and Luis Rojas / Reuters
Mexico’s Finance Ministry said it expects to cut government spending next year by 4.3 percent as revenue slumps because of a plunge in oil prices and flagging crude production.
The government plans to trim the 2016 budget by 135 billion pesos ($8.9 billion) from the spending level planned in 2015, according to a statement from the ministry.
The cuts follow a previously announced reduction in spending plans for 2015 that have crimped the growth outlook in Latin America’s second-largest economy as the government dials back on planned infrastructure projects.
Speaking on local radio, the finance ministry’s chief economist, Luis Madrazo, said there would be no more cuts in 2015.