Austerity measures proposed by new President-elect

First to take the cut will be AMLO's own salary

President-elect Andrés Manuel López Obrador has slashed the salary he is expected to receive in his new position. Once he takes office in December, the new President will take home less than half of what his predecessor had earned in a bid to enforce new austerity plans.

Lopez will earn 108,000 Mexican pesos per month which is the equivalent to US$5,707, a considerable change from the current wage earnt by President Enrique Peña Nieto that stands at a monthly 270,000 Mexican pesos (US$14,310).

According to a report by The Independent, the President-elect had the intention to reduce his wage even further however feared that future cabinet members, of which many were leaving high paid jobs to join the government, would disagree with the pay cuts. In line with the new proposals, no members of López’s government will be able to earn more than him.

The new party has plans for dramatic change across Mexico from overthrowing the ‘‘mafia of power’’ which is the term he coined for the current establishment, enforcing austerity cuts that will help bridge the poverty gap that is rife across the country and implementing new infrastructure to enhance links to the poorer areas of the south. He has announced a zero-tolerance policy on corruption.

It has been rumoured that key contenders in Mexico’s economy will be Guillermo Ortiz, a former chief of the central bank, and Santiago Levy of the Inter-American Development Bank who will find ways to implement the new President’s election promises of universal pensions awe well as other funding plans like scholarships, claims The Economist.

As part of the plans to reduce ‘extras’ that politicians receive, chauffeurs and bodyguards will also be reduced, a limit on political presents will be limited to five thousand pesos, officials will be required to state their assets and Lopez has suggested that former presidents will not receive pensions.

According to The Independent a number of supporters had gathered to celebrate the news, and laud the proposals as a step in the right direction for the country. The main aim of the upcoming President’s plans is to ensure that the government caters to all citizens.

“What we want is for the budget to reach everybody,” Lopez is quoted as telling the media outside his campaign headquarters.

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