Sunday, March 13, 2011

One legacy of PRI's disastrous rule of Oaxaca: 96 percent of funds federal

These figures, revealed by Oaxaca's new secretary of finance Gerardo Cajiga Estrada, are truly dramatic: The state manages only to contribute 3.75 percent of its total spending, meaning 96.25 percent of funds spent by the state government are transfers from the federal government.

PRI, which governed the state for 81 years, almost completely failed in two very basic state functions: To provide a monopoly of the legitimate use of violence, and to produce a functioning state bureaucracy capable of taxing its citizens.

As the new Gabino Cué government is taking stock, here's part of the PRI legacy on the latter function:

- More than 55 percent of commercial business do not pay taxes
- Only a third of impuesto sobre nómina or payroll taxes are paid
- Only 30 percent pay the required tenencia or car tax
- The average predial or property tax payment is 35 pesos, against ideally 220, according to Cajiga Estrada.

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