Background on the Federal Revenue Law (LIF) and its Significance
The Mexican Senate’s committees have approved the Federal Revenue Law (LIF) for 2026, which proposes a borrowing of 1.78 trillion pesos for the upcoming year. This decision has turned the document over to the Senate plenary for further discussion and voting, with a deadline of October 31.
Committee Approval and Voting Details
After voting on amendments to the Federal Tax Code, the Income Tax on Products and Services (IEPS) law, and the Federal Tax Code, senators from the United Committees of Finance and Public Credit and Legislative Studies First quickly approved the LIF 2026 with a unanimous 21 votes in favor, eight against, and zero abstentions.
Key Provisions of the LIF 2026
The LIF 2026 proposes allocating 10.1 trillion pesos for the next year, with 1.75 trillion pesos coming from financing. The government anticipates a historic tax revenue of 5.8 trillion pesos, marking a 6.5% increase compared to this year’s approved amount. In the petroleum sector, an expected 1.2 trillion pesos represent a 1.9% annual growth, while state organizations and enterprises are projected to contribute 1.2 trillion pesos, a 1.2% increase.
Limited Discussion and Concerns
During the dictamen discussion, only committee presidents presented proposals, while no other senators from either the opposition or Morena alliance participated. However, concerns about debt were raised during earlier discussions on the dictamen.
Debt Concerns and Perspectives
Panist senator Ricardo Anaya highlighted that, over the past seven years, Mexico’s debt has doubled, and the government has struggled to maintain it.
Key Questions and Answers
- What is the Federal Revenue Law (LIF)? The LIF is a proposed annual budget outlining Mexico’s federal government revenue and expenditure plans.
- What amount does the LIF 2026 propose? The LIF 2026 proposes allocating 10.1 trillion pesos for the next year, with 1.75 trillion pesos coming from financing.
- What are the projected tax revenues? The government anticipates a historic tax revenue of 5.8 trillion pesos, marking a 6.5% increase compared to this year’s approved amount.
- What growth is expected in specific sectors? In the petroleum sector, an expected 1.2 trillion pesos represent a 1.9% annual growth, while state organizations and enterprises are projected to contribute 1.2 trillion pesos, a 1.2% increase.
- What are the concerns regarding the LIF 2026? Panist senator Ricardo Anaya highlighted that, over the past seven years, Mexico’s debt has doubled, and the government has struggled to maintain it.
