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Mexican President Lopez Obrador Is Bringing Sweeping Budget Cuts Causing Some Concerns

Mexican President Andres Manuel Lopez Obrador (AMLO) has brought sweeping changes to the country since he took office last year. Whether it’s crime reform, government overhaul or even cutting his own salary. But according to the Washington Post, Lopez Obrador has also slashed the budget of the Mexican Olympic Committee. The cuts are a huge blow to the day-to-day operations of the sports organization which will now no longer be able to offer food, lodging, and medical services at its central sports training complex.

The budget cut is just the latest to come from Andres Manuel Lopez Obrador administration which has already cut back on other services such as government jobs, researchers and archaeologists.

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The call for more budget cuts comes as a surprise to some as Lopez-Obrador, a self-described leftist, has consciously spent less on government-funded efforts. In just the first seven months on the job, the administration has pushed efforts to reduce spending, which even includes Lopez-Obrador’s own salary and plans to sell off the presidential plane.

The Mexican Olympic Committee says it doesn’t have the $4.7 million needed to operate the Olympic sports center in Mexico City with full resources due to these cuts. The sports complex has various track and pool facilities that include a gymnasium and velodrome. Just this year alone, government funding for sports is about 25 percent below last year’s spending.  

Critics of these budget cuts say the government is spending the same amount of money but instead reallocating it to different areas and needs. This has resulted in fears that the cuts will result in not having enough money to perform and essential tasks and duties. 

President Lopez Obrador has described his new financial plan as “republican austerity.” This is causing some concerns in Mexico. 

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Besides just athletics, there is increasing stress for other civic services. Researchers and archaeologists at the National Institute of Anthropology and History told the Washington Post that almost 200 employees have been cut since the year began. These latest announced cuts have renewed fears of more layoffs coming in the near future. 

“We have gone from republican austerity to Franciscan poverty,” Joel Santos, head of the researchers’ union at the institute told the Washington Post. Many of these employees are scarcely paid and are on temporary contracts, which already places a big burden on their pay and livelihood. 

Throughout the government spectrum, there has been visible cuts and elimination of positions like consultancy and management positions. All while thousands of more public servants have resigned or quit altogether. 

Some of these funds being cut are essential to certain projects being worked on throughout Mexico. 

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While Mexico’s budget, $5.8 trillion pesos ($304 billion), may look similar to last year, it just means that Lopez Obrador is putting it to use in different areas. These decisions are well in his power and are following his budget plan that he crafted back in December. 

“There is money,” Valerie Moy, an economist told the Washington Post. “It’s just being redirected to the president’s social and infrastructure projects, some of which appear to be almost whims that lack sound research to determine their viability or potential negative impacts.”

There are some concerns that these cuts are being made without proper consideration. Finance Minister Carlos Urzua left his position just last week due to what he says is the public policy decisions the administration is doing “without sufficient sustenance.”

“It’s what the president decides, what the president wants — and that’s what’s done,” Moy said.

There is no say when or what will be cut next but it may have a huge effect on things bigger than sports. 

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Back in May, Mexico City was hit with severe smog that was caused by nearby wildfires. Experts say that the looming air pollution could have been prevented if it wasn’t for the budget cuts to environmental services that deal with this type of detection.

“All of these activities could be seriously compromised if the austerity measures are applied indiscriminately,” Mexico’s Science and Technology Consultative Forum said in a statement this year. “If that happens, it would be an irredeemable setback in Mexico’s effort to achieve robust national development, and would make us even more dependent on what occurs beyond our borders.”

READ: The Peso Plummets After Mexico’s Finance Minister Quits And Calls Out Corruption In AMLO’s Government

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