Budget planning and energy reform in Mexico. A case study: the Federal Electricity Commission

Abstract

Abstract Modernization in the public sector involves the implementation of various actions that are focused on the economic, political and social development of the country. This seeks efficiency and results in the short and medium terms to respond to the needs and demands of citizens and therefore to meet the raison d'être of the State. The objective of this article is to determine the importance of Planning, Programming and Budgeting in Mexico, particularly in the State’s Productive Company: the Federal Electricity Commission. It is based on the normative framework derived from the Energy Reform decreed in 2013, as well as the implementation of tools and methodologies to evaluate public expenditure and to control budgetary programs that focus on a Results based Budget and the Performance Evaluation System. The study is descriptive; the research method is inductive, and identifies particular cases related to the changes that are generated from the energy reform. Additionally, a documentary review is presented by using analysis-synthesis procedures. The results reflect that the Federal Electricity Commission and its Subsidiary Productive Companies have their own regulatory framework, aligned with federal legal provisions, that is consolidated with the actions of the Board of Directors, and guidelines issued. However, they have additionally preserved precepts of the Federal Law of Budget and Tax Responsibility, which provides added value to the company, generating a favorable environment of transparency and accountability. Keywords: planning; budget; energy reform.