MEXICO CITY, Nov 14 (Reuters) - Mexico’s lower house of Congress early on Thursday passed the federal spending plan for next year, completing approval for the budget, which proposes running a deficit in 2014 to lift the country’s struggling economy.
The budget for 2014 foresees additional tax revenues worth just over 1 percent of gross domestic product (GDP) as it includes a package of fiscal measures the government hopes will increase the tax take by around 2.5 percent of GDP by 2018.
The almost 4.5 trillion peso ($343.11 billion) budget now passes to President Enrique Pena Nieto for approval. That is expected to be a formality.
The Mexican economy, Latin America’s second biggest, is undergoing its toughest year since 2009, with the central bank forecasting growth of between 0.9 and 1.4 percent in 2013.
The government plans to run a budget deficit of 1.5 percent of GDP next year. In 2014, the central bank sees the economy expanding by between 3 and 4 percent.