Mexico to make spending cuts

Mexico's new Finance Minister, Jose Angel Gurria, has announced that the government is to make spending cuts of nearly two billion dollars in the budget for 1998.

He said the measure was necessary because of a drop in revenue caused by lower oil prices.

The minister said the cuts would mean the postponement of several spending projects -- including job creation -- and some government departments would be reorganised to save money.

The ministry says the cut is equivalent to 0.4 percent of the gross domestic product.

From the newsroom of the BBC World Service