Political budget cycle under divided and unified government in Mexico, 1994 and 2006

In order to substantiate the evidence of political budget cycle (pbc) in Mexico, this essay examines the federal budget before and after the presidential elections of 1994 and 2006. Previous studies are extended since we incorporate the effects of unified or divided government on the budget-making process, focusing on the relationship between the Chamber of Deputies and the Executive. The essay analyzes how and to which extent the Deputies reapportioned the budget plan submitted by the President, as well as the evidence of pbc based on the difference between authorized and actual federal spending. We find that under a unified government the composition of the Chamber of Deputies encourages pbc; whereas, under a divided government, it cannot prevent it altogether.