Finances in Urban Municipalities in Mexico. An Analysis of the New Challenges Regarding the Management of Local Treasuries (1978-1998)

Abstract

This document examines the development of municipal finances in Mexico during the period from 1978-1998. The study focuses on the analysis of income and expenditure and on the follow-up of financial management indicators that may serve as a reference for examining particular municipal cases, specifically for the study of urban finances. In order to carry out this research, the authors constructed their own financial base so as to be able to distinguish clearly between financial performance by type of municipalities, which had not been achieved in other articles due to the way in which official documentation is presented. The study concludes that although there has been an evident expansion of resources in urban municipalities, this process has developed differently according to the type of city involved. Large cities improve their financial structures and strengthen their finances, whereas the opposite happens in small cities, particularly in rural municipalities, which lag further and further and further behind.