The government of Mexico's Jalisco state is planning to cut by 40% the 2012 budget for the state science and technology council Coecytjal compared to 2011, local paper El Informador reported.
Jalisco's government is proposing a budget of 150mn pesos (US$10.6mn) for 2012, or 100mn pesos less than this year.
If approved, the budget cut would directly affect the local software development sector, and mainly the software industry development program, Prosoft, Coecytjal's director Francisco Medina was quoted as saying.
Local software developers will have to prove their maturity to maintain the 14% growth they have had since 2004, but now on their own, Medina added.
According to the official, the direct impact will be in the capacity to fund projects for small companies, particularly startups.