Will they take money from your Welfare Pension? AMLO proposes that Banco del Bienestar charge a commission – El Financiero

The Welfare Bank you can get 1.5 percent on the amount approved to distribute the resources of each of the 13 social programsas a consideration for the financial services provided in each fiscal year, proposed President Andrés Manuel López Obrador to the Legislative Branch.

The president sent an initiative to the Permanent Commission to reform the Organic Law of the Banco del Bienestar and the Federal Law of Budget and Fiscal Responsibilitywhich seeks to strengthen the Welfare Bank.

What changes does AMLO propose for the Banco del Bienestar?

The document states that it is essential the economic strengthening of the Banco del Bienestarthrough a mechanism that does not impact public finances, as well as the continuity of the dispersion of the corresponding resources.

Given this, it proposes adding a paragraph to the Organic Regulations of the Banco del Bienestar, which establishes that the Banco de Bienestar may “obtain (…) as compensation for the financial services provided, 1.5 percent on the amount approved for distribution in accordance with the provisions applicable to each social program in the corresponding fiscal yearin terms of what is established in the Federation Expenditure Budget respective”.

Furthermore, it states that in order to continue strengthening the strategy regarding access to subsidies and social programswhen using the infrastructure of the Banco del Bienestar to receive, manage and disperse resources from social programs, harmonization with the Federal Budget and Fiscal Responsibility Lawwith the objective of achieving the efficient and transparent delivery of subsidies to the beneficiary population.

To do this, “it will be established in the Expenditure Budget the percentage for the consideration for the financial services provided that the indicated financial institution must receive, which will be 1.5 percent of the amount approved for distribution in accordance with the applicable provisions for each social program in the corresponding fiscal year.

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The Welfare Bank distributes the resources of 13 social programsamong them the Welfare Pension for older adults; People with disabilities; support for children of working mothers, and programs for people in social or natural emergencies, among others.

In the Banco del Bienestar the resources are also sent to payment of the Benito Juárez Scholarship; Young People Building the Future; Young People Writing the Future; the School is Ours; Production for Wellbeing; Sowing Life; and for better housing.