Michoacán has passed a constitutional reform that prevents state governments from contracting debt beyond their six-year term, aiming to put an end to decades of public debt burdens on the population.
Michoacán has made a significant legislative change by passing a constitutional reform that prohibits future state governments from incurring debts that could burden the public beyond their elected term. This reform breaks a cycle of over thirty years of public indebtedness that has often been detrimental to the people of Michoacán. Governor Alfredo Ramírez Bedolla, along with representatives from various political parties and branches of government from Palacio de Gobierno, highlighted the importance of this measure as a step towards fiscal honesty and responsibility.
The discussions surrounding this reform underscored a dark history of prior administrations that not only accumulated substantial debt but also used borrowing as a means to embezzle public funds. Governor Bedolla pointed out that between 1993 and 2021, mismanagement had led to a monumental debt of 22 billion pesos, further compounded by interest. This legacy of fiscal irresponsibility has left lasting consequences on the state's economy and populace, making it imperative for the current administration to initiate reforms aimed at safeguarding fiscal policy and accountability.
The approval of this reform may serve as a blueprint for other states in Mexico grappling with similar issues of public debt and mismanagement. By curtailing the ability of state governments to borrow beyond their mandate, the reform seeks not only to stabilize Michoacán's finances but also to enhance governance and public trust. The impacts of this legislative change are likely to resonate beyond the state, suggesting a potential shift in how Mexican states approach budgetary and debt management in the future.
