Mexico’s government announces austerity plan to trim spending $3 billion over 3 years

Mexico announces austerity plan to save $3 billion

MEXICO CITY — Mexico’s government has announced an austerity plan for trimming general spending $3.2 billion (40.1 billion pesos) over the next three years so it can provide more money for social and infrastructure programs.

The Finance Department says the plan includes a freeze on pay raises this year for high- and mid-ranking civil servants and a reduction in personal expenses.

The government also plans to cut telephone, photocopying and printing usage and water consumption and pledges not to rent or buy new buildings or purchase vehicles in 2010.

The military and some security, educational and health services are exempt from the measures announced Tuesday.

Mexico’s economy shrank 6.8 percent last year, hard hit by the U.S. recession.