(19 Nov 1997) Spanish/Nat
Mexico's ruling Institutional Revolutionary Party (PRI) may be facing its toughest challenge this century as it tries to win approval for its budget plan.
The first opposition-led lower house in seven decades has vowed to scrutinise spending and revenue details line by line.
Mexico's Congress has until December 15th to agree the budget.
Mexico's Treasury Secretary Guillermo Ortiz embarked on what is likely to be a rough ride on Tuesday as his ruling party seeks approval for President Ernesto Zedillo's 1998 budget plan.
Mexico's House of Deputies is responsible for passing the budget, but opposition parties now hold a majority of 262 seats to the Institutional Revolutionary Party (PRI)'s 238.
SOUNDBITE: (Spanish)
"We on our part, ladies and gentlemen legislators, we acknowledge the legitimacy of the parliamentary groups' demands which are aimed at boosting the political value of the fulfilment of the electoral promises."
SUPER CAPTION: Guillermo Ortiz, Mexican finance minister
This is the first time in seven decades the ruling PRI hasn't held a majority in congress.
The normal rubber stamp procedure is likely to become a test of strength between ruling and opposition groups.
Ernesto Zedillo's 100 (b) billion U-S dollar fiscal plan will be scrutinised more closely than any this century.
Zedillo wants a tight rein on the country's deficit in 1998 in the hope that economic stability can be maintained.
Guillermo Ortiz called for a fiscal deficit equal to one-and-a-quarter per cent of gross domestic product.
Some opposition lawmakers want a larger deficit to allow for increased social spending.
Other budgetary plans have also been attacked.
SOUNDBITE: (Spanish)
"Now you firmly and confidently say that the decrease of the value- added tax by five points is equivalent to 25-thousand (m) million peso- reduction and that the benefits of this reduction will not be noticed by the most needy classes."
SUPER CAPTION: Gerardo Buganza, PAN (National Action Party) MP
This strong opposition will change what has always been a formality until now.
SOUNDBITE: (Spanish)
"It's a novelty that this happens because, with the system of dominant parties, there had never been a doubt that the congress would approve the draft budget presented by the president."
SUPER CAPTION: Miguel Angel Granados, political analyst
Mexico has been battling an economic crisis that began three years ago with a 50 per cent currency devaluation.
Economic austerity measures instituted by Zedillo are slowly pulling the nation out of crisis, but the average wage earner has been hard hit.
Opposition groups are keen to see some relaxing of the austerity drive.
SOUNDBITE: (Spanish)
"Unfortunately, we didn't see any of our proposals accepted and the document (draft budget) as it is, cannot be passed by this congress. It will have to go through the different commissions, the plenary session will amend many things and the document we are going to pass on to the senate is going to be substantially different because it will include the proposals and positions of each party."
SUPER CAPTION: Maria Dolores Padierna PRD (Democratic Revolutionary Party) MP
Agreement between the major parties seems a long way off - there's likely to be some tough bargaining ahead.
SOUNDBITE: (Spanish)
"The (only) point on which we agreed was that we are willing to continue to talk, to keep communication open."
SUPER CAPTION: Andres Manuel Lopez Obrador, President of the PRD (Democratic Revolutionary Party)
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