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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: CommanderCricket who wrote (123400)	8/19/2009 11:05:32 AM
From: CusterInvestor	1 Recommendation Read Replies (2) \| Respond to of 206184

Falling oil revenue pushing Mexico to raise taxes 08/18/09 09:41 AM oilonline.com[tt_news]=76989&cHash=dc0b65fca3 The Mexican government said Tuesday its 2010 budget will include new taxes to compensate for a decline in oil revenues that is expected to leave a $23 billion hole in the public finances. "The future caught up with us. We have always had in mind the possibility that oil revenues were going to become exhausted, and now we are facing a very clear manifestation in that regard," Finance Secretary Agustin Carstens told lawmakers in a briefing on the draft budget President Felipe Calderon must present by Sept. 8. Mexico, one of the world's leading oil exporters and a key supplier to the United States, is expected to see its production of crude drop by roughly 800,000 barrels per day in 2010. Since oil revenue accounts for 40 percent of the Mexican government's income, the decline in output is projected to cost the treasury some 300 billion pesos ($23.07 billion). Oil production has already slumped more than 23 percent since 2006, Mexico's finance department says, and officials expect Mexican crude to sell for an average of $53.80 a barrel in 2010, down from $66.92 currently. Mexico "faces a financial shock, the biggest fiscal impact in the last 30 years," Carstens said Tuesday, though he predicted the economy will grow by 3 percent next year after shrinking by a projected 7 percent in 2009. The finance secretary urged lawmakers to approve Calderon's budget to better "confront this fall in petroleum revenues." "It will be important to put forward tax and tax-administration measures that resolve in a credible way what we could call the permanent or lasting reduction in public revenues," Carstens said. He said the administration plans to gradually reduce deficit spending as the economy recovers and tax collections increase, with the aim of achieving a balanced budget in 2012, the final year of Calderon's six-year term. "Spending will be less than that observed in 2008, so it will be key to protect essential programs and seek better efficiency and quality in public services," the finance secretary said.