Financial Solidity and Infrastructure Investments
The Mexico City government has announced a financial report for the first quarter of 2025, showcasing total revenues of 97,764 million pesos, representing an annual growth of 11.4%. This financial stability allows the city to invest in crucial infrastructure projects related to the 2026 FIFA World Cup.
Infrastructure Funding without New Taxes
Juan Pablo de Botton Falcón, head of the Mexico City Administration and Finance Secretariat (SAF), revealed that the funding for World Cup-related infrastructure will come from existing mechanisms, without introducing new taxes. The resources will be channeled through the Tourism Promotion Mixte Fund (FPM), which traditionally supports advertising efforts. Instead, these funds will now be directed towards permanent infrastructure improvements.
Key Infrastructure Projects
Clara Brugada, the head of government, unveiled several key projects during the presentation of Mexico City’s committee for the 2026 FIFA World Cup on May 7. These projects focus on mobility and security enhancements, leaving a lasting legacy for the city. Some of these initiatives include:
- Acquisition of 17 light rail trains
- Improvements to strategic roadways, such as Calzada de Tlalpan
- Installation of 40,800 surveillance cameras for video vigilance
- Enhancements in neighborhoods adjacent to the Azteca Stadium
These investments are part of the original government plan and have been accelerated due to the upcoming sports event. Brugada emphasized, “We are enhancing infrastructure while using the World Cup as motivation.”
Increased Revenue Collection
Mexico City’s local finances reported an 11.4% increase in total revenues during the first quarter of 2025, amounting to 97,764 million pesos. Local revenues total 52,347 million pesos, with 21,784 million pesos coming from the Urban Minor Tax (IMPU), a 27.8% increase compared to the same period in 2023.
The Impuesto Sobre Nóminas (ISN) yielded 13,738 million pesos, a 25.5% increase from the previous year, with over 90% of companies benefiting from fiscal incentives. This ISN growth, from 3% to 4%, is estimated to generate an additional 10,000 million pesos annually, ensuring that extra nominal income is invested in infrastructure rather than administrative expenses.
Revenue from Permanent Licenses
The issuance of 708,082 permanent licenses between November 2024 and May 2025 generated 1,116.2 million pesos, accounting for 74.4% of the annual target. These funds will be directed to a trust dedicated to public transportation and non-motorized mobility, such as bike lanes. The specific projects will be transparent through a microsite where users can view detailed information, including the Tlalpan bike lane and public transportation system improvements.
Government Spending
The Mexico City government reported a net total expenditure of 113,511 million pesos by the end of the first quarter of 2025, representing 38.9% of the annual approved program. Total expenditure amounted to 47,418 million pesos, with resources already allocated for priority projects in mobility, security, and infrastructure.
Financial Stability
Juan Pablo de Botton, the finance secretary, highlighted that achieving 100% compliance with the Income Law by the first quarter demonstrates the financial solidity of Mexico City. He expressed gratitude to taxpayers for their timely compliance, ensuring a strong financial foundation from the beginning of the year.
Healthy, sustainable, and sustainable public finances are the foundation for addressing inequalities, investing in mobility, and fostering a favorable investment environment.
Key Questions and Answers
- What is the total amount allocated for World Cup-related infrastructure projects? The Mexico City government has allocated 6,000 million pesos (approximately 31.5 million USD) for infrastructure projects linked to the 2026 FIFA World Cup.
- How are these projects being funded without introducing new taxes? The funds will come from existing mechanisms, specifically the Tourism Promotion Mixte Fund (FPM), which traditionally supports advertising efforts. These resources will now be directed towards permanent infrastructure improvements.
- What are some of the key infrastructure projects announced by Clara Brugada? Key projects include acquiring 17 light rail trains, improving strategic roadways like Calzada de Tlalpan, installing 40,800 surveillance cameras for video vigilance, and enhancing neighborhoods near the Azteca Stadium.
- How has revenue collection increased in Mexico City? Mexico City’s local finances reported an 11.4% increase in total revenues during the first quarter of 2025, with local revenues totaling 52,347 million pesos. The Urban Minor Tax (IMPU) revenues increased by 27.8% compared to the same period in 2023.
- What is the estimated annual revenue from the increased Impuesto Sobre Nóminas (ISN)? The ISN growth, from 3% to 4%, is estimated to generate an additional 10,000 million pesos annually.
