Politics Makes Strange Bedfellows

After PRI Senator Manlio Fabio Beltrones' break with his party's position in favor of President Calderon's modified Income Law (LIF), it might be surprising to see Beltrones making common cause with the PAN on the Expenditures Law (PEF). The answer to the riddle is to be found in the distribution of expenditures between the federal government and the states.

PRI governors want the states to gain more control over spending. The PAN wants the present tilt conserved. The Oportunidades program is a battleground. Had the Administration's proposed 2% "contribution to combat poverty" been approved, some of the funds raised would have gone to Oportunidades, an effective program administered by Sedesol. As it turns out, the trade-off the PRI has presented the PAN is either to reduce the proposed funding for Oportunidades or allow the states to administer the program. According to news reports, the PAN has opted for the former.

By law, the PEF has to be approved by November 15. Congress does have the option to extend the deadline to December 31. What happens if Congress approves a budget which President Calderon vetos? If Congress does not pass a new budget, one acceptable to the President, by December 31, the 2008 budget will remain in force.