Background on the Mexican Senate and its Role in Approving the 2026 Federal Income Law (LIF)
The Mexican Senate, an essential component of the country’s bicameral legislative branch, recently approved the 2026 Federal Income Law (LIF) without any changes. This decision supports a historic tax revenue proposal for the upcoming year and sets a debt limit of 1.78 billion pesos.
The LIF 2026 Details
With a vote of 74 in favor, 35 against, and zero abstentions, the Senate approved the LIF 2026 in its entirety. Despite various reservations presented by opposition parties, including the Green Ecologist Party of Mexico (Morena’s ally), none were accepted for discussion. The session lasted approximately 20 minutes.
According to the LIF 2026, the following year is expected to generate 10.1 billion pesos in revenue, with 1.78 billion pesos coming from domestic financing and 15.5 billion US dollars from external credit.
Opposition Concerns Regarding Rising Debt
Several opposition legislators highlighted that the debt has doubled over the past seven years. They argued that the government has had to take on more debt to meet its financial obligations, such as financing costs.
Ricardo Anaya: “If the old debt of 10.55 billion pesos is called ‘the cursed debt,’ then the new debt of 20.22 billion is a demonic debt. This is the responsibility of Morena’s brutal irresponsibility.”
Key Financial Projections for 2026
The Paquete Económico 2026 outlines that, in the following year, the broadest measure of public debt—the Saldo Histórico de los Requerimientos Financieros del Sector Público (SHRFSP)—will reach 20.2 billion pesos, equivalent to 52.3% of the Gross Domestic Product (GDP).
Regarding tax revenues, a historic collection of 5.8 billion pesos is anticipated, marking a 6.5% increase compared to this year’s approved amount. Morenista Miguel Ángel Yunes emphasized that these tax revenues will serve as the central pillar of public financing.
- Expected petroleum income: 1.2 billion pesos (1.9% annual increase)
- Expected income from government entities and companies: 1.2 billion pesos (1.2% annual increase)
Projected Public Spending for 2026
Based on the projected public revenue, the expected public spending for the following year is 10.1 billion pesos, as outlined in the draft of the Federal Expenditure Budget (PPEF) 2026. This budget must be reviewed, analyzed, debated, and voted on by the Chamber of Deputies before November 15.
Key Questions and Answers
- What is the main topic of this news article? The Mexican Senate approved the 2026 Federal Income Law (LIF), which includes a historic tax revenue proposal and sets a debt limit.
- What are the concerns of opposition legislators regarding the rising debt? Opposition legislators argue that the debt has doubled over the past seven years, and the government has had to take on more debt to meet its financial obligations.
- What are the projected tax revenues for 2026? A historic tax collection of 5.8 billion pesos is anticipated, representing a 6.5% increase compared to this year’s approved amount.
- What is the projected public spending for 2026? The expected public spending for the following year is 10.1 billion pesos, according to the draft of the Federal Expenditure Budget (PPEF) 2026.
