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Mexico Budget

NPR's Gerry Hadden reports Mexico's new president has won his first big battle, winning approval of his budget for 2001 from a divided congress. Dealing with the Mexican congress was expected to be one of the biggest challenges for Vicente Fox. Although analysts call the budget approval a political victory, it was not without cost. Fox was forced to give up spending money on big infrastructure projects, which he believes is the most effective way to lift people out of poverty. Instead, the money went to housing and social programs that more immediately help the poor. Fox's overall economic plan is in some jeopardy because oil prices have dropped below the lower limit his budget had anticipated. Oil revenues account for about a third of Mexico's budget.

Copyright 2001 NPR