Mexico City, September 9 (teleSUR-RHC)-- The Mexican government will slash public spending by 221 billion Mexican pesos or $13 billion for 2016, in order to “preserve the economic stability of the country,” the Finance Minister Luis Videgaray announced on Tuesday.

According to Videgaray, Mexico has to deal with the weakness of the global economy, the fall in oil prices, and the depreciation  of the peso against the dollar, all pressing President Enrique Peña Nieto to take action.

The economic plan, which also includes the Income Law and a proposal to reduce the public deficit from one percent of the GDP to 0.5 percent, was delivered to the president of the Mexican lower house of congress.
  
The government reduced its estimate of the price of oil from $55 to $50 a barrel and a production of 2.47 million barrels a day.

Inflation, the official said, continues at three percent, give or take one percentage point, while the exchange rate stands at about 16.70 pesos to the dollar.

“The budget is based on realistic and prudent premises, contributing to preserving macroeconomic stability, the fundamental condition for growth and economic development,” Videgaray said.