Fiscal policy in Mexico depends on what?

Fiscal policy in Mexico depends on what?

• A. It is determined by international lenders only.
• B. It does not require legislative input.
• C. It is entirely determined by the executive.
• D. It depends on Congressional approval and coalitions.

Answer: (D)

Fiscal policy in Mexico hinges on congressional approval and coalitions. The President can propose the federal budget and tax changes, but the key steps—setting spending levels and changing tax laws—must be approved by Congress. The strength and composition of the governing or supporting coalitions in Congress determine whether those proposals can pass, shaping what the fiscal policy actually looks like. In practice, the Chamber of Deputies controls revenue measures and the annual budget, while the Senate reviews and can modify or approve related items, making legislative negotiation essential.

External pressures from international lenders or markets can influence priorities, but they don’t set the policy on their own. Legislative input is required, and success depends on building enough support across parties to form a workable coalition.