Background on Ethos and its Relevance
Ethos Innovación en Políticas Públicas is a prominent Mexican non-governmental organization dedicated to fostering innovation in public policies. Their recent analysis of Mexico’s 2024 Public Accounts sheds light on the pressing need to enhance efficiency and transparency in public expenditure.
Public Spending Analysis
In 2023, the Mexican government’s expenditure amounted to 9.2 trillion pesos, a 1.5% increase from the approved budget. This overspending prompted Ethos to emphasize the importance of not only focusing on how much is spent but also ensuring that resources are allocated and utilized effectively.
Spending Priorities and Cuts
The analysis revealed that the government prioritized sectors like energy and fuel, while crucial areas for the Mexican population—such as healthcare and education—experienced cuts. Specifically, 1.3 trillion pesos were allocated to energy and fuels, marking a 15% overrun. Conversely, education received 1 trillion pesos (1% more than approved), and healthcare saw a sub-execution of 2.8%, receiving 935,000 million pesos.
Implications for Social Development
Ethos highlighted that this trend poses a significant risk to the social development of the population. Investing in social well-being and human capital is vital for building a robust foundation for the future.
Public Revenue Growth and Insufficiency
Despite the growth in public revenues, which reached 7.5 trillion pesos (1.4% annual growth and 2.2% above the Congress approval), Ethos pointed out that these resources are insufficient to meet the growing public spending needs. Consequently, the government has resorted to increased borrowing.
Revenue Sources
Non-tax revenues grew by 42.2% (110,380 million pesos above approval) due to increased revenues from rights, products, and utilization. State organizations and companies saw an additional 12.1% (130,925 million pesos) in revenues primarily due to higher CFE (Federal Electricity Commission) income from energy sales.
Petroleum Revenue Shortfall
Petroleum revenues fell short of both approved and 2023 collection levels, totaling 958,914 million pesos (8.5% less than approved). This shortfall can be attributed to lower hydrocarbon production, reduced natural gas and oil prices, and a weakened exchange rate.
Key Questions and Answers
- What is Ethos Innovación en Políticas Públicas? Ethos is a Mexican non-governmental organization focused on promoting innovation in public policies.
- What were the main concerns raised by Ethos regarding public spending in 2023? Ethos emphasized the need for improved efficiency and transparency in public expenditure, noting that crucial sectors like healthcare and education experienced cuts while energy and fuel received disproportionate funding.
- How did public revenues perform in 2024? Public revenues grew by 1.4% annually, reaching 7.5 trillion pesos, but were deemed insufficient to meet growing public spending needs.
- What factors contributed to the growth in non-tax revenues? Non-tax revenues increased due to higher income from rights, products, and utilization, as well as greater earnings from state organizations and companies.
- Why did petroleum revenues fall short in 2024? Petroleum revenue fell due to lower hydrocarbon production, reduced natural gas and oil prices, and a weakened exchange rate.
