Published May 21, 2015
Mexico will cut government spending by $8.4 billion this year because of a drop in revenues due to declining oil prices.
Finance Minister Luis Videgaray also said Friday the government will put on hold plans to build a high-speed rail project that has been marred by allegations of favoritism.
Mexico has seen prices for its oil fall in recent months from around $100 to $38.42 per barrel. The government relies on oil revenues for about a third of its budget.
A Mexican firm allied with Chinese companies won the high-speed rail project in November. But the contract award was cancelled just before local media revealed the Mexican firm built a mansion for First Lady Angelica Rivera.
Another train project in the Yucatan peninsula has been cancelled.
https://www.foxnews.com/world/mexico-cuts-spending-by-8-4-billion-because-of-oil-price-drop-high-speed-rail-put-on-hold