Mexican Treasury Secretary Luis Videgaray estimates the country's economy will increase 3.5 percent next year, slightly less than the almost 4 percent growth in 2012. He expects inflation to run at 3 percent.
Videgaray presented Congress on Friday with a balanced budget plan for 2013. Lawmakers are expected to approve the budget by the end of the year.
The treasury secretary projects next year's price for a barrel of oil at $84.90 and pegs output at 2.55 million barrels a day. Oil revenues finance about 30 percent of the federal government's budget.
Videgaray says the budget includes more social spending, one of new President Enrique Pena Nieto's campaign promises.
Pena Nieto took office a week ago and promised to raise pensions for the elderly and spend more on infrastructure.