Jalisco Governor Enrique Alfaro is seeking to increase state government spending by around 10 percent next year, with much of the extra revenue coming from increased payroll taxes and fees in various areas.
The state legislature must finish its discussions on the proposal and vote on its passage by December 15.
Education and health will see the biggest hikes in the $US6.6 billion budget, up by 15.6 percent and 12.2 percent respectively. Spending in the two sectors will account for around one-third of the entire budget.
The security budget will increase by 10.7 percent to $US480 million. Alfaro promised to hire 225 new state police officers and give pay raises to all police and transit officials.
The increase in the payroll tax from 2 to 2.5 percent will affect 130,000 businesses in the state and bring in $US120 million, the governor said. These funds will go directly to the health sector, he added, noting that several new hospitals and health centers are planned, while funding will be increased to improve the supply chain of medicines.