Decentralization and Fiscal Federalism in Mexico

Abstract

In this paper we analyze the evolution and current situation of the Mexican Fiscal Federalism. Our diagnosis showed that deep structural inequalities in the country is present, both internally and in comparison with the countries of the OECD. We pointed out the low financial autonomy of the subnational governments and the system of transferences in force is examined. Also, we evaluate the current transferences and we conclude that deep innefficiency and inequality problems remains.Descentralización; Federalismo Fiscal; Transferencias; México