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UPDATE 1-Mexico lower house passes 2013 budget income bill
December 12, 2012 / 11:11 PM / in 5 years

UPDATE 1-Mexico lower house passes 2013 budget income bill

* New president’s budget estimates 3.5 pct growth in 2013

* Lawmakers pass zero percent deficit, excluding Pemex debt

* Budgeted price of Mexican crude increased to $86 per barrel

MEXICO CITY, Dec 12 (Reuters) - Mexico’s lower house of Congress approved the income section of the government’s 2013 budget proposal on Wednesday, which plans for a slight increase in revenue next year as a global slowdown drags on Latin America’s No. 2 economy.

Lawmakers voted 417 in favor and 33 against to pass the income bill with only minor modifications, including a higher estimated price for the country’s crude oil exports next year, which bumps up expected revenue from the state oil firm.

The bill now heads to the senate.

President Enrique Pena Nieto’s administration, which took office on Dec. 1, had submitted its 2013 income and spending plan on Friday. The budget projects Mexico’s economy would grow 3.5 percent next year, down from an estimated 3.9 percent in 2012.

Lawmakers raised the estimated price for Mexico’s crude mix in 2013 to $86 per barrel compared to the government’s proposal of $84.90, the lower house said in a statement.

Mexico depends on income from the state oil monopoly Pemex to fund nearly one-third of the federal budget, and the increase in the oil price gives lawmakers more funds to allocate.

Lawmakers raised projected income next year to 3.956 trillion Mexican pesos ($310.17 billion) from the government’s proposal of 3.931 trillion pesos, the statement said.

Once the Senate approves the income bill, the lower house must pass the 2013 spending bill before the end of the year.

Finance Minister Luis Videgaray said on Monday that lawmakers will need to approve a tax reform bill next year in order to fund Pena Nieto’s plans to boost the economy.

Upon taking office, Pena Nieto brokered a deal with major opposition parties to jointly back a series of proposals that includes more infrastructure spending and an overhaul of Mexico’s social security safety net.

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