ABSTRACT

This chapter argues that the creation of the Secretaria de Programacion y Presupuesto (SPP) in 1976 needs to be seen as a crucial stage in the state-led industrialization process that began in 1940. To contextualize the birth of the SPP, it provides a brief overview of the Echeverria administration. The rapid expansion of the public sector during the Echeverria administration has complex causes. The chapter looks at the effects of both increased public expenditure and public sector growth on bureaucracy. The rapid expansion of the public sector during the Echeverria administration has complex causes. The Echeverria administration is associated with high rates of public spending and a striking expansion of the government’s apparatus. As the finance ministry’s grip on both economic policymaking and public spending weakened, Hugo B. Margain's government would face growing private sector opposition. The policy shift pointed towards state intervention in the economy.