La Deuda Pública Estatal Como Instrumento Para Financiar Gasto Electoral
State debt as a tool to finance election spending

Summary/Abstract: All levels of goverment have to guide and promote the development of their regions. The goverment collect taxes and increase public borrowing to finance the development. Since 2009, in Mexico that ideal does not work well. The mexican subnational governments have increased public borrowing to finance electoral campaigns and current expenditure. This paper reports the results of a econometric model for testing that increased public borrowing is not associated with long run development. In Mexico, the states with the highest level of development and access to financial markets began to expand the demand for bank loans to cover the reduction in income; developed by the regression model we conclude that the expansion of debt is correlated with electoral periods; also pursues the strategy of borrowing short-term purposes such as electoral campaigns or fund current expenditure and part of the debt was used to finance investment in public works. Such financial strategy in the long term is gravely irresponsible for regional development, as the states financed partisan interests at the expense of future public spending cuts.

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