Mexico : 1998-1999 / Organisation for Economic Co-operation and Development.

Format:

Book

Author/Creator:

Organisation for Economic Co-operation and Development Staff, Corporate Author.

Contributor:

Organisation for Economic Co-operation and Development, contributor.

Series:

OECD Economic surveys (Series)

OECD Economic Surveys

Language:

English

Subjects (All):

Economic history.

Mexico--Economic conditions.

Mexico.

Mexico--Economic policy.

Physical Description:

1 online resource (173 pages).

Edition:

1st ed.

Place of Publication:

Paris : OECD Publishing, [1999]

Language Note:

English

Summary:

Assessment and Recommendations I. Recent Trends and Short-Term Prospects -The current economic cycle in perspective -The economy is slowing down -The labor market has improved -The disinflation process reversed in 1998 -The external balance has deteriorated -The short-term outlook II. Economic Policies -Overview -Monetary policy: Coping with external shocks -Fiscal policy: Adjusting to lower oil prices -Economic policy for 1999-2000 and longer-term considerations III. The Tax System: A Need for Strengthening the Revenue Raising Capacity -The economic and social context influencing the design of the tax system -Broad features of the Mexican tax system -Main issues for strengthening the tax system -Conclusion and options for further reform IV. Implementing Structural Reform: A Review of Progress -Developments in the banking sector -Progress in reforming the social security system -Enhancing human capital and other labor market issues -Increasing product market competition Annex I. Summary of tax reform measures, 1987-98 Annex II. Main issues in the tax mix discussion in OECD countries in the 1990s Annex III. The statutory tax regime, 1998.

Contents:

Intro

Table of contents

Assessment and recommendations

I. Recent trends and short-term prospects

The current economic cycle in perspective

Table 1. Demand and output

Figure 1. Key aspects of economic activity

Figure 2. Comparison of two cycles

The economy is slowing down

Figure 3. Contributions to real GDP growth

Table 2. Indicators of investment activity

Table 3. Aggregate saving and investment

The labour market has improved

Table 4. Labour market indicators

Figure 4. Unemployment in urban areas

The disinflation process reversed in 1998

Figure 5. Real wages, labour productivity and price trends

Figure 6. Mexico's relative competitive position

The external balance has deteriorated

Current-account developments

Table 5. Current external account

Figure 7. Foreign trade, current account and export performance

Capital account

Table 6. Capital account and balance of payments

The short-term outlook

II. Economic policies

Overview

Monetary policy: coping with external shocks

The policy strategy

Figure 8. Inflation targets

Figure 9. Base money and net international assets

Box 1. New instruments of monetary policy

The response to the international financial crisis

Figure 10. The exchange rate and interest rates since 1994

Outcomes

Figure 11. Real returns on indexed bonds and money market instruments

Figure 12. The exchange rate and selected monetary variables in 1998

Figure 13. Exchange rates of selected countries

Table 7. Bank lending and financial saving

Figure 14. Monetary aggregates

Assessment

Fiscal policy: adjusting to lower oil prices

General considerations

Figure 15. Budget indicators

Table 8. Public sector financial accounts

Budgetary developments in 1997

Table 9. Federal government budget.

Table 10. Public enterprises under budgetary control: financial accounts

Table 11. Public programmable expenditure by sector

The 1998 budget and its implementation

Figure 16. Oil prices and budget assumptions

Table 12. Budget impact of the decline in oil-related revenue and offsetting measures

Table 13. Adjustment to 1998 budget expenditures

The 1999 budget

Debt management

Figure 17. Total net debt of the public sector

Figure 18. Public sector domestic debt

Figure 19. Structure of public debt

Economic policy for 1999-2000 and longer-term considerations

III. The tax system: a need for strengthening the revenue raising capacity

Figure 20. Tax revenues and the level of income, 1996

The economic and social context influencing the design of the tax system

Figure 21. General Government expenditure - Average 1990-1996

Box 2. Taxation and economic growth

Table 14. Estimates of informal sector size in selected countries

Box 3. The informal sector

Broad features of the Mexican tax system

Figure 22. Total tax revenues

Figure 23. Tax mix in Mexico, 1980-1996

Figure 24. Tax mix in selected countries, 1996

Box 4. PEMEX and subsidiaries' contributions to the federal government budget

Box 5. Indexation to inflation

Table 15. Tax progressivity and distribution of wage-earners

Figure 25. Marginal tax wedges by family type and wage level, 1996

Table 16. Required real pre-tax rates of return, 1996

Figure 26. Average effective tax rates

Box 6. Measuring effective tax rates

Main issues for strengthening the tax system

Broadening the base: preferential regimes and the informal sector

Table 17. Indicators of VAT compliance and productivity

Table 18. Revenues from property taxation and excises, 1996

gasoline prices, 1998

Tax administration.

Box 7. Recent initiatives to improve tax administration and control

The tax system and income distribution

Figure 27. Tax revenues and the distribution of income after tax, 1996

Figure 28. Overall progressivity of individual income tax systems in selected OECD countries,1996

Figure 29. Theoretical effective tax rates for different levels of income

Box 8. Income allocation for different income levels

Figure 30. Income sources by decile, 1994

Figure 31. Distribution of implicit vat subsidy, 1996

Box 9. Taxing the affluent more

Fiscal federalism

Figure 32. Tax collection by level of government in selected countries, 1996

Budgetary volatility

Figure 33. Coefficient of variation in tax revenue and primary expenditures

Figure 34. Oil revenues, oil prices and real GDP growth

Conclusion and options for further reform

Box 10. Changes to the tax system contained in the budget for 1999

Box 11. Strengthening tax revenue: a synopsis of policy recommendations

IV. Implementing structural reform: a review of progress

Developments in the banking sector

Support programmes

Box 12. The financial rescue package

Box 13. Estimated fiscal cost of the financial rescue package

Table 19. Fiscal cost of support programmes for banks and debtors

Restructuring

Table 20. Banking system indicators

Remaining problems and new initiatives

Box 14. The financial sector reform

Progress in reforming the social security system

Implementing the new pension system

New developments in health care reform&amp

norm

Enhancing human capital and other labour market issues

Table 21. Implementing the OECD Jobs Strategy - an overview

Figure 35. Education indicators in comparison

Increasing product market competition

Privatisation and sale of concessions.

Figure 36. Performance indicators in telecommunications

Regulatory reform

Notes

Bibliography

Annex I - Summary of tax reform measures, 1987-98

Annex II - Main issues in the tax mix discussion in OECD countries in the 1990s

Annex III - The statutory tax regime, 1998

Table A1. Main features of the tax system, 1998

Table A1. Main features of the tax system, 1998 (cont.)

Table A2. Rates and structure of income tax on individuals, 1998

Table A3. Statutory rates and rules for taxation of corporations, 1998

Table A4. Main features of VAT systems in selected countries

Table A4. Main features of VAT systems in selected countries (cont.)

Boxes

Box 7. Recent initiatives to improve tax administration and control

Box 11. Strengthening tax revenue: a synopsis of policy recommendations.

Box 12. The financial rescue package

Tables

Table 9. Federal government budget

Table 10. Public enterprises under budgetary control: financial accounts

Annexes

Table A1. Main features of the tax system, 1998 (cont.).

Table A1. Main features of the tax system, 1998 (cont.).

Notes:

Bibliographic Level Mode of Issuance: Monograph

Description based on print version record.

Description based on publisher supplied metadata and other sources.

ISBN:

92-64-16728-5

OCLC:

1132391784