One month before the end of the six-year term of President Andres Manuel Lopez Obradorpublic finances They recorded a fiscal deficit of 893 thousand 809.2 million pesos, reported the Ministry of Finance and Public Credit (SHCP).
The dDeficit occurs when the government spends more than the income it receives over a certain period. Between January and July, spending Net income amounted to more than 5.33 billion pesos, but revenues reached only 4.44 billion pesos.
According to the public finance report and public debt at the end of July, at least 66 percent of income of the country were obtained from the collection of taxes, amounting to almost 2.94 billion pesos.
The other part was obtained from oil revenues of 604 thousand 892.2 million pesos, 7.9 percent lower than the same period in 2023.
Despite the results observed in the seventh month of the year, the department headed by Rogelio Ramírez de la O maintained that public finances remain stable and in line with what was planned.
“At the end of July, Mexico’s public finances remained solid, with budget balances in line with fiscal targets and sustainable debt, reflecting prudent management,” the SHCP said in its report.
Rating agencies such as Fitch Ratings and Moody’s consider that reducing the budget deficit will be one of the main challenges of the next government headed by Claudia Sheinbaum Pardo.
The problem is that Public revenues are less than net expenditure and there is no tax reform that will help increase tax revenue, while the government continues to financially support Petróleos Mexicanos (Pemex).
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By the end of the year, The SHCP estimates that the fiscal deficit will be around 5.9 percent of the Gross Domestic Product (GDP), as a result of the completion of infrastructure works during the current six-year term.
By 2025, during Claudia Sheinbaum’s first year in office, this variable is expected to drop to 3.5 percent.