The Supreme Court takes power over savings from AMLO – El Financiero

With the votes against the ministers Yasmin Esquivel and Loretta Ortizthe plenary of the Supreme Court of Justice of the Nation (SCJN) declared unconstitutional that the President can decree the destination of the savings that are given by the Republican Austerity Law.

Minister Juan Luis González Alcántara recalled that the Constitution establishes that the lower house is responsible for allocating all the spent at any stage.

“The Chamber of Deputies, in accordance with the principle of legality, must authorize specific amounts for each item of expenditure. It is also responsible for authorizing any budget adjustments.”


The minister explained that actions such as redirecting the budget they would open the door so that the secretariats could inflate the items to declare savings and thus be able to make use of these assets. “I consider that allowing this situation would be a blow to the democratic principle in the revision of the public spending and accountability”, he sentenced.

On the contrary, Minister Yasmín Esquivel said that this power of the deputies ends when the Federation Expenditure Budget (PEF) is issued, so there is no impediment for the Executive to allocate the assets that were not spent.

He recalled that in 2006 the Law on Austerity Republican, and had already contemplated that the savings could be used without the approval of the Chamber of Deputies.

“The savings generated as a result of the application of said measures must be destined in the terms of the general provisions applicable to the priority programs of the executor of the expense that generates them”, established the minister.

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However, Minister Javier Laynez refuted him that this part of the law sought to generate a public spending more efficient, but not budget savings or sub-exercises.

Laynez also reiterated that all the reforms that have been made in budgetary matters since 1997 have been carried out to “make real and effective the counterweight of the Legislative Power against the Executive.”

When presenting the proposal, Minister Norma Piña assured that there should be flexibility in the budgetbut it cannot give the power to the Executive Branch to decide on public spending.

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