Background on the Finance Ministry and Its Role
The Secretaría de Hacienda y Crédito Público (SHCP), or the Ministry of Finance and Public Credit, is a Mexican government body responsible for formulating and executing the country’s fiscal policy. It plays a crucial role in managing public finances, including tax collection, public debt management, and overseeing the budget for various government functions, such as healthcare.
Decline in Healthcare Spending
According to the Informe de Finanzas Públicas y la Deuda Pública for the first quarter of the year, public spending on healthcare services has experienced a double-digit decline. The functional expenditure in healthcare amounted to 151,733 million pesos, marking a 10-year low.
Compared to the same period in the previous year, the exercised spending in healthcare has dropped by 14.3%, representing the largest decline for a comparable period since 2023, when it contracted by 15.6%.
Reasons for the Spending Reduction
Bertha Gómez Castro, the subsecretaría de Egresos of SHCP, explained that the reduction in healthcare spending was due to insufficient government income resulting from Pemex’s productivity decline in the first quarter of 2025. Faced with resource shortages, essential areas like healthcare and other vital sectors experienced additional cuts beyond those approved by Congress.
Ministry’s Stance on “Adjustments”
During a press conference, Gómez Castro denied claims of significant cuts in healthcare and other sectors, instead referring to these changes as “adjustments” aimed at achieving the government’s fiscal consolidation goals for the year.
“The spending has not been cut; it has been adjusted to meet the objectives and targets set for 2025. The authorized budget corresponds to what is necessary to fulfill those objectives and targets…we are not contemplating or proposing any substantial adjustments to spending,” she stated.
Gómez Castro further elaborated on the healthcare sector, mentioning that the first-quarter decline was due to underspending caused by overpriced medications, which hindered the government’s ability to purchase them. She anticipated improvements in the second quarter, leading to a significant increase in spending.
Integrated Approach to Healthcare
Gómez Castro emphasized the importance of a comprehensive view of healthcare, encompassing contributions and actions from various healthcare institutions such as ISSSTE, IMSS, and IMSS Bienestar. This holistic approach aims to determine the sector’s needs accurately and allocate resources accordingly.
Key Questions and Answers
- Q: Has there been a significant reduction in healthcare spending this year? A: The Finance Ministry denies substantial cuts, referring to the adjustments as necessary steps towards fiscal consolidation.
- Q: What caused the decline in healthcare spending? A: Insufficient government income due to Pemex’s productivity decline led to resource shortages, prompting cuts in essential areas like healthcare.
- Q: How does the Finance Ministry view these changes? A: The ministry calls the adjustments necessary to meet fiscal objectives for 2025 and denies any substantial cuts in healthcare or other sectors.
- Q: What is the current status of healthcare spending? A: Despite a 12.2% reduction compared to the previous year, the ministry asserts that spending has been adjusted rather than cut.
