Fiscal Sustainability: Responsiveness in Times of Crisis: A Review of Sub-National Governments in Mexico

Abstract

This paper attends to the issue of sustainability and responsiveness administration under the following premise:Appropriate management of public finances is essential to comply with the provision of public goods and services, which results in the priority agenda of public policies driving governments, however, this may be at risk agenda by two main factors: (1) management of public finances; and (2) external shock: recessions and financial crisis.Consequently, it must generate elements to enhance the responsiveness of governments, as is the implementation of instruments of fiscal sustainability in the public finances that allows reduce the impact of the external economic shocks , the debt overhang and inhibit acts of corruption endanger public services. In this sense, the document in the first part seeks to illustrate the Mexican case, in an approach from the review of legislation by type of sub-national and statistics of public debt and fiscal sustainability indicators. In a second stage is to link the responsiveness of the variable public spending on public services and their relation to the year of recession. Finally, the results will be analyzed to issue policy recommendations.