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Veto power.

In a close decision, the Supreme Court ruled that the president does have constitutional authority to veto the federal budget passed by Congress, handing a welcome victory to President Vicente Fox.

President Fox filed the case with the Court late last year when Congress passed a budget that "drastically limited funding for several government departments controlled by the president, and reallocating resources to states controlled by opposition governors," the Financial Times reported.

Fox criticized the budget as "totally partisan" and sent it back to Congress without signing it, instead offering "recommendations." All five opposition parties joined forces to override Fox's veto attempt.

The Fox administration has operated using the budget passed by Congress, but insisted it might be able to make changes after a Supreme Court ruling. Chief Justice Mariano Azuela said Congress should vote again on the recommendations made by President Fox, the FT reported.

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Title Annotation:BRIEFS
Publication:Business Mexico
Geographic Code:1MEX
Date:Jun 1, 2005
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