Last review date: May, 2024
Fiscal Policy
The Federal Government, through the Ministry of Finance and Public Credit (SHCP), works actively in the definition and implementation of fiscal policies focused on achieving a balance between government spending and revenue programs.
As a result of this fiscal policy and as a result of making tax collection systems more efficient, the taxpayer base has been broadened, Mexico has been consistently increasing its tax collection and reducing its dependence on oil revenues in recent years.
In this regard, the 2024 Economic Package sets fiscal targets consistent with a healthy public finance trajectory. Budget deficit levels of 3.3% and 4.9% of GDP are estimated for 2023 and 2024, respectively. In addition, a primary budget balance surplus of 0.1% of GDP is anticipated for 2023, and a primary budget deficit of 1.2% of GDP is estimated for 2024.
As part of the Fiscal Policy, public resources have been directed towards achieving results, with the aim of having a greater impact on people’s well-being and an efficient public expenditure through responsible and prudent management of public finances.
Mexico has a solid and sensible administration of its public debt based on risk diversification and sustainability. As a percentage of GDP, this debt is lower than that of countries like Japan, Brazil, South Africa and the United States.[1]
[1] IMF, Fiscal Monitor, 2024.
The 2023 economic program plans to establish measures to guarantee the sustainability of public finances. Both the income and expenditure policies are aimed at expanding fiscal coverage to finance priority development programs and projects and, consequently, the inclusive growth of the economy, without causing imbalances in public finances.[1]
[1] Ministry of Finance, Pre-criteria of Economic Policy 2025.
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p: Preliminary
e: Estimated
GOVERNMENT’S TOTAL GROSS DEBT COMPARATIVE TABLE
