Mexico's intergovernmental transfer system needs to reduce vertical imbalances and discretionary federal transfers. This note assesses Mexico's pending subnational fiscal reform agenda. Mexico is a federal country divided into 31 sovereign states and one federal district. Each state is composed...

Mexico needs a comprehensive fiscal reform to alleviate the looming medium-term pressures on its budget. This policy note contributes to the debate on Mexico's looming fiscal challenges. The country's fiscal framework, centered on the 2006 budget and fiscal responsibility law, and prudent fiscal...