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The Growth of public debt in Coahuila, Mexico

Author

Listed:
  • Nicolas Guadalupe Zuniga-Espinoza

    (Universidad Autonoma de Sinaloa)

  • Celia Ruth Sainz-Lopez

    (Universidad Autonoma de Occidente, Mexico)

  • Erick Zuniga-Soto

    (Universidad Autonoma de Occidente)

Abstract

The objective of this work is to show that the accelerated growth of Coahuila's public debt occurred because the local legislation failed to limit the amounts borrowed, permitting the entirety of the Unconditional Transfers (UCT), specifically the General Participation Fund (GPF), to be granted as security for the loans. The results show that during the period 2000-2016, the average annual growth in the public debt was 21%. In addition, 94.3% of the GPF was pledged as security, leaving 5.7% of this income source to meet local public spending needs. Furthermore, of the seven loans obtained in 2018 and 2019, five of them were used for refinancing purposes and the other two to address liquidity shortfalls.

Suggested Citation

  • Nicolas Guadalupe Zuniga-Espinoza & Celia Ruth Sainz-Lopez & Erick Zuniga-Soto, 2021. "The Growth of public debt in Coahuila, Mexico," Technium Social Sciences Journal, Technium Science, vol. 17(1), pages 166-174, March.
    • Handle: RePEc:tec:journl:v:17:y:2021:i:1:p:166-174
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    References listed on IDEAS

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    More about this item

    Keywords

    public debt; transfers; subnational governments;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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