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IN NEAR-UNANIMOUS VOTE, CONGRESS APPROVES LARGEST BUDGET IN MEXICAN HISTORY.

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In a near-unanimous vote, the Chamber of Deputies approved the expenditures portion of the 2008 budget, authorizing the executive to spend about 2.57 trillion pesos (US$235 billion) during the year, about 152.5 billion pesos (US$13.9 billion) above the amount requested by President Felipe Calderon. In contrast, the 2007 budget was estimated at 2.32 trillion pesos (US$212 billion). The proposal--which contains a large increase in expenditures for social programs, public safety, and tourism--takes into account the recently approved tax reform and projections that global oil prices will remain high. The budget is the largest in Mexican history, administration officials said.

Calderon, whose original budget proposal did not include the tax reforms (see SourceMex, 2007-09-26), has said he supports the version approved by the Congress. The changes in the tax code include tax increases for business and gasoline (see SourceMex, 2007-09-19).

The expenditures budget (Presupuesto de Egresos de la Federacion), approved by a 449-to-6 margin, with three abstentions,...