Oil and Gas Industry Adds Billions to New Mexico’s Budget as Economists Warn of Volatility

The latest Oil and Gas Industry economic outlook by the Legislative Finance Committee. It reveals that the expansion of oil and gas operations is expected to drive significant growth. The said growth is in New Mexico’s General Fund. The state economists predict that the General Fund will grow by approximately one billion dollars annually over the next two years.

This forecast is a positive indication for the state’s economy, as it suggests that the oil and gas industry will continue to play a leading role in driving economic growth. However, it also highlights the potential risks associated with the dependence on a single industry. The state may need to diversify its economy to mitigate the effects of any potential downturns in the oil and gas industry.

The Oil and Gas Industry General Fund

The General Fund is the primary source of funding for state agencies and services in New Mexico. It is a discretionary fund that is useable to operate various state programs such as education, public safety, health care, and infrastructure development. The General Fund is under the state’s Finance and Administration Department, which is responsible for ensuring that the funds are allocated appropriately and in accordance with state laws.

Each year, the General Fund is appropriated by the Legislature in the state budget. The Governor has the power to veto any appropriations that are not in line with their priorities. The General Fund is often subject to competing demands from different agencies and programs. Lawmakers must make tough choices about how to allocate the limited funds available. Despite these challenges, the General Fund is critical to the functioning of state government. Moreover, the provision of essential services to New Mexicans.

This is Fiscal Year 2023 that is running from July 1, 2022, to June 30, 2023, t

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Source: Carlsbad Current-Argus

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