The disappearance of trust funds will not affect the recipients: SHCP – The Economy


Mexico City. Amid the debate over the cancellation of the trusts, the head of the Ministry of Finance and Public Credit, Arturo Herrera Gutierrez, emphasized the absence of any of the beneficiaries in education, culture, science, sports and concern for victims, among other things.

He advocated pushing through the budget for transparency, while through trust wasting public resource vision.

With his Twitter account, the public servant explained through a video that there are two payment methods. One is through budget and the other is through trust.

In 2019, government spending totaled 6.1 billion pesos and only 29 billion were implemented through a trust fund. He remembers spending through the trust fund the exception, not the rule.

Because the budget is valid for one year from January 1 to December 31 of the year, and one way to bypass that time limit is through confidence to apply it later, he said.

Some agencies that cannot fully spend the budget contribute to the confidence and thus can skip the year. Later on, Herrera explained, for reasons of transparency, the expenses are recorded as expenses but not when executed.

In the 7:24 minute video, Herrera Gutierrez emphasized that the use of trust funds masked the agency’s inefficiency in managing spending.

He said funds are an extraordinarily ineffective method. He revealed that a few weeks ago they found a 1,200 million peso trust fund that hadn’t worked since 2013 and had only made payments to the bank that ran it, which amounted to 1,250,000 pesos a year.

He said the shortest way to make payments to scientists, researchers, innovators and athletes, among others, is directly through the budget mechanism so as not to lose sight of the resources.

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