Federalism and financial discipline of state governments in Mexico

Faced with the problem of increasing levels of subnational debt in Mexico, Peña Nieto’s government promoted, through the Financial Discipline Law, the establishment of standards regarding budget, debt and transparency for state treasuries with the argument of limiting debt and make public spending transparent. This law imposes measures on sovereign entities in their public finances and tax matters. The hypothesis of this work is that the financial discipline that was promoted further subordinates the local treasuries of the states and municipalities to the federation, affecting the financial sovereignty of the states and thus federalism.

Business · Economics · Federalism · Financial system · Political science · Politics · State (computer science) · Computer Science · Finance, Taxation, and Governance · Latin American Legal and Economic Studies · Law · Local Government Finance and Decentralization