Mexico Aims to Slash Budget Deficit Under President Sheinbaum

President Claudia Sheinbaum of Mexico aims to keep the budget deficit under 6% of GDP this year. Her goal is to reduce it to 3.5% by 2025, without detailing specific spending cuts. The deficit increase follows former President Lopez Obrador's administration's less restrictive fiscal policies.

Mexico City's financial landscape is under new scrutiny as President Claudia Sheinbaum pledges to maintain the country's budget deficit below 6% of GDP for the current year. Present estimations align the deficit at 5.9% of GDP.

Assuming office just this month, Sheinbaum has set ambitious plans to curtail the deficit down to 3.5% by 2025, though she has yet to specify the spending cuts necessary to achieve such targets.

These efforts follow a period under former President Andres Manuel Lopez Obrador, during which significant government spending led to the deficit soaring to its highest level since the 1980s.

(With inputs from agencies.)