Debt decreased by 15 percent

The State of Baja California has reduced by 15 percent the 34.1 billion peso debt left by the previous administration.

The debt has been decreased by 5.2 billion pesos, or $248.6 million.

According to authorities, this reduction has been achieved through the rigorous application of a cost containment strategies, reduction of the government structure and scrupulous management of budget items.

In addition, the federal government has delivered 12 billion pesos in the first four months of 2020. The amount represents around a quarter of the state’s 2020 budget.

During the past administration, then Gov. Francisco Vega accused the federal government of stopping the disbursement of funds to Baja California.

“We have addressed this issue with cost containment and direct attention to vulnerable groups, teachers, and unions and sustaining public finances themselves,” State Secretary of the Treasury Rodolfo Castro Valdez said. “The governmental apparatus, from the beginning of this government, was reduced.”

According to the official, agencies were streamlined and negotiations were held with unions to produce greater efficiency while addressing social needs.

Castro Valdez stressed that funding to the municipalities has continued while the state has reduced debt.

He also noted that, despite the reduction in spending, there were drops in federal funds derived from the COVID pandemic.

“(Mexico’s) tax collection fell naturally, between 10 or 15 percentage points in different national parameters in the federal part,” Castro Valdez said. “In the state government we have had a fall in May of around 8 or 9 percent.”