Public debt management in local governments from the new public management perspective

Abstract

The objective of this study is to analyze the impact of the implementation of the management model called the New Public Management in the management of public debt and the financial risk in the local governments in Mexico. The analysis was carried out from a descriptive and correlational perspective. Focusing on a first moment on the administrative logic of that managerial model that privileges the economy, efficiency and effectiveness, bringing organizational changes that have adjusted the structures, functions, strategies and organizational culture in the Public Administration; and in a second moment, in the analysis of the evolution of the balances of financial obligations and the legal framework that formally regulates the public debt in the states and municipal entities. The study seeks to test the
research hypotheses that was formulated as follows: The implementation of the management
model called The New Public Management has caused the accelerated increase in the level
of indebtedness, putting public finances at risk in local governments in Mexico. The presentation of the hypothesis arises from the observation of the accelerated growth of balances of financial obligations in the states and municipal entities, as well as the treatment promoted by the legislative agenda in relation to public debt, which consisted in the implementation of various administrative and financial reforms focused on containing the
excessive increase in the balances of financial obligations, without having empirical evidence
that such purpose has been achieved until now.