Mexico had already pared its budget to the bone when oil prices began plummeting earlier this year.
Oil exports account for about a third of government revenues.
Spending allocated in the budget for government programs is 0.5 percentage-points lower in relation to gross domestic product than it was in 1998 after the three rounds of cuts. The budget also estimates average crude oil exports at 1.645 million barrels a day, unchanged from current levels. As part of a wider agreement by oil producers, Mexico in June agreed to cut oil exports by 200,000 barrels a day in an attempt to shore up flagging prices. Tellez said last month Mexico was willing to maintain that export level to the end of 1999 from the current deadline of June 30, if members of the Organization of Petroleum Exporting Countries, or OPEC, would do the same. OPEC members failed to reach an agreement at their meeting in Vienna in late November, sending oil prices to new lows.