Fiscal Federalism. Chiapas and Nuevo Leon: A Comparative Analysis

  • Jorge Alberto López Arévalo Facultad de Economía,UNAM
  • Baltazar Mayo Mendoza

Abstract

The mexican federal system that was designed starting in the 1980s has not generated the expected results given that the system of transfers designed for the opposite effect has instead generated a high dependency on local governments, waste, a deviation of public resources, and little transparency in the spending and losses at the level of citizens’ common good. This result has been very pronounced in the poorest states of the country, given that they are entities with greater spending needs (high levels of poverty) and have received higher levels of transfers than the national average. In the following text a comparative analysis is made amongst entities with similar population and size but divergent results in economic development and as a result, their contributions to the mexican federal system.

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