Édgar Amador Zamora Presents SHCP’s Progress to Mexican Congress
Édgar Amador Zamora, the Secretary of Finance and Public Credit (SHCP), assured Mexican lawmakers that a sustainable and solid fiscal consolidation has been achieved, despite an upward revision of the fiscal deficit projection for this year.
Presentation of the First Government Report and 2026 Economic Package
During his presentation of the first government report and the 2026 economic package, Amador Zamora explained that the Requerimientos Financieros del Sector Público (RFSP) are expected to close at 4.3% of the Gross Domestic Product (GDP) this year.
Adjusted Deficit Target vs. Previous Year’s Level
However, this figure exceeds the initially approved target for this year, which was to reduce the deficit to 3.9% of GDP after peaking at 5.7% in 2024.
“Responsible management of public liabilities throughout this year has enabled us to stabilize Mexico’s debt at healthy and sustainable levels, with a very favorable comparison to countries with similar economies,” Amador Zamora stated during his speech in the Chamber of Deputies.
Guaranteeing Minimum Well-being with Fiscal Discipline
The finance chief asserted that a minimum level of well-being can be ensured for the Mexican population while maintaining sound public finances, emphasizing that fiscal discipline has been “one of the virtues of the second level of the Fourth Transformation,” ensuring sound public finances.
“It has been shown that guaranteeing a minimum level of well-being for the population can coexist with sound public finances, and that promoting economic development is not exclusive of a responsible fiscal policy but rather a condition and outcome,” he added.
Public Spending and Income Projections for the Next Year
For the upcoming year, the government proposes total public spending of 10.1 trillion pesos, a 5.9% increase compared to this year’s approved amount. This spending will be funded by public revenues of 8.7 trillion pesos, along with an internal borrowing ceiling of 1.78 trillion pesos and an external limit of $15.5 billion.
Continued Fiscal Consolidation and Program Expansion
Regarding the deficit, fiscal consolidation is expected to continue, with RFSP projected to close at 4.1% of GDP in 2026.
Amador Zamora highlighted that social programs have been expanded and their coverage increased without the need for new taxes or fiscal reform.
“It is crucial to emphasize that the expansion of social programs and investments made this year have been financed without raising taxes or implementing a fiscal reform, but through revenue efficiency focused on efficiency and combating tax evasion and fiscal evasion. This strategy has yielded strong results, proving that the anti-corruption strategy continues to bear fruit,” he asserted.
Proposed Fiscal Adjustments for the Next Year
Although no fiscal reform is being pursued, a Miscellaneous Fiscal bill is proposed for the next year, including updates to “healthy taxes” quotas and an 8% VAT on violent video games. Additionally, proposed changes in international trade aim to increase tax revenue.
Key Questions and Answers
- What is the current fiscal deficit projection for this year? The Requerimientos Financieros del Sector Público (RFSP) are expected to close at 4.3% of the Gross Domestic Product (GDP) this year.
- How has the deficit changed from previous years? The initially approved target for this year was to reduce the deficit to 3.9% of GDP after peaking at 5.7% in 2024.
- What has been achieved in terms of fiscal consolidation? A sustainable and solid fiscal consolidation has been achieved, maintaining sound public finances and stabilizing Mexico’s debt at healthy levels.
- How has public spending been financed without raising taxes? Through revenue efficiency focused on combating tax evasion and fiscal evasion, resulting in strong outcomes and proving the effectiveness of the anti-corruption strategy.
- What fiscal adjustments are proposed for the next year? A Miscellaneous Fiscal bill is proposed, including updates to “healthy taxes” quotas and an 8% VAT on violent video games, along with changes in international trade to increase tax revenue.
