Public spending in Mexico will increase in 2024
The Public spending in Mexico could reach a historic record of 9 trillion pesos.
In this regard, the government of Andrés Manuel López Obrador will conclude the year with a historic public expenditure exceeding 9 trillion pesos.
The public spending for 2024 will focus on several mega-projects, such as the Tren Maya and social programs.
Rogelio Ramírez de la O, Secretary of Finance and Public Credit (SHCP), described it as “austere and honest spending” when presenting the final Economic Package of this six-year term to the Chamber of Deputies.
According to the 2024 Federal Budget Proposal (PPEF), Mexico’s public spending for the next year will be slightly over 9.02 trillion pesos.
Public spending in Mexico 2024
This figure represents a 4.3% increase in public spending in Mexico compared to what was approved for 2023.
Authorities believe that this level of spending is in line with the necessary parameters to ensure economic growth while maintaining fiscal balance.
Additionally, they emphasize that public spending in Mexico is centered around promoting the well-being of the general population and the inclusion of diverse demographic groups.
This will occur in a context where the Ministry of Finance foresees economic growth ranging from 2.5% to 3.5%, driven by internal factors such as consumption and employment.
The Pension for Well-being for Older Adults alone will receive resources of 465.048 billion pesos, while the Tren Maya will receive 120 billion pesos.
In total, the Mexican government will allocate 1.26 trillion pesos to service the debt, resulting in an 11.8% increase compared to what was approved for 2023.
In contrast, state and municipal government allocations will decrease by 0.9%, totaling 1.26 trillion pesos.
Meanwhile, resources of 44.1 million pesos will be allocated to Adefas (liabilities from previous fiscal years), remaining unchanged.
Thus, non-programmable spending, which includes payments for obligations, will amount to 2.5 trillion pesos, a 5.0% increase from this year.
