Abstract

RAMIREZ RODRIGUEZ, Roberto  and  ERQUIZIO ESPINAL, Alfredo. Sustainable management and determinants of the debt rate in the federal entities of Mexico. Vértice univ. [online]. 2021, vol.23, n.89, pp.13-23.  Epub Jan 17, 2022. ISSN 2683-2623.  https://doi.org/10.36792/rvu.vi89.27.

The essay tries to identify the importance of the factors that determine the growth of the indebtedness rate of the 32 states of Mexico. Likewise, it is proposed to measure an indicator of the primary balance and another of the sustainable primary balance of state public finances.

Likewise, the technique of measuring the primary deficit and the sustainable primary deficit of state public finances is developed based on the formula of the government's budget restriction. Given the lack of opportunity to publish the results of the primary balance of the states, an indirect measurement of the primary balance and the sustainable primary balance is made, and the results are discussed in light of the recent situation of the slowdown and subsequent deepening recession for the COVID-19 pandemic. Recommendations for the sustainable management of state public finances are also proposed.

Based on the indicators proposed to measure the primary balance and the sustainable primary balance, it can be seen that there is a trend towards the loss of financial room for maneuver by the states due to the unsustainable management of public finances. This problem has worsened with the prolongation of the recession due to the stoppage of activities and confinement, leading to higher levels of public debt.

Keywords : Deficit and Surplus; Debt and Debt Management; Budget forecasts Deficit and Debt; H62; H63; H68.