Background on Claudia Sheinbaum’s Administration
Claudia Sheinbaum, the current Head of Government of Mexico City, has been a prominent figure in Mexican politics since 2018. As the successor to former mayor Marcelo Ebrard, she has continued his progressive policies and infrastructure projects. Her administration’s financial management is crucial for understanding the current state of public finances in Mexico City, which often sets a precedent for national policies.
Public Spending Overview
According to the Report on Public Finances and Public Debt for the first quarter of 2025, released by Mexico’s Secretaría de Hacienda y Crédito Público (SHCP), the government exercised over 3 trillion pesos, marking a 3.7% decrease compared to the same period last year.
Programmable Spending
Programmable spending, focused on goods and services for public benefit, saw a 7.6% annual decline, totaling 2.6 trillion pesos.
Non-Programmable Spending
Non-programmable spending, excluding debt financing costs, amounted to 529.432 billion pesos, representing a 4.6% increase compared to the same period in the previous year.
Debt Financing Costs
The government allocated 389.705 billion pesos towards debt financing costs, marking a 9.1% annual increase but falling short of the planned amount by 33.825 billion pesos.
Public Revenue Growth
Despite the spending trends, public revenues have grown by 6.5% compared to the same period last year, totaling 2.8 trillion pesos.
Tax Revenue
Tax revenues amounted to 2.02 trillion pesos, a 10.1% increase year-over-year. The SHCP attributed this growth to increased domestic consumption, a robust labor market, and improved tax collection efficiency.
Key Challenges
Although public revenues have grown, they still fall short of the planned amount by 9.345 billion pesos, primarily due to lower-than-expected petroleum income.
Petroleum Income
In the first four months, petroleum income totaled 315.283 billion pesos, a 12.3% decrease from the previous year. The SHCP cited a lower petroleum platform as the cause of this decline.
Key Questions and Answers
- Q: Who is Claudia Sheinbaum, and why is her administration relevant? A: Claudia Sheinbaum is the current Head of Government of Mexico City, succeeding Marcelo Ebrard. Her administration’s financial management is crucial for understanding public finances in Mexico City, which often influences national policies.
- Q: What is the current state of public spending in Mexico City? A: The government has exercised over 3 trillion pesos so far, marking a 3.7% decrease compared to the same period last year. Programmable spending has declined by 7.6%, while non-programmable spending has increased by 4.6%. Debt financing costs are 9.1% higher than the previous year but are 33.825 billion pesos below the planned amount.
- Q: How have public revenues performed in the first quarter of 2025? A: Public revenues have grown by 6.5% compared to the same period last year, totaling 2.8 trillion pesos. Tax revenues have increased by 10.1% year-over-year, driven by domestic consumption growth, a robust labor market, and improved tax collection efficiency.
- Q: What challenges does the Mexican government face regarding public revenues? A: Despite the growth in public revenues, they still fall short of planned amounts by 9.345 billion pesos, primarily due to lower-than-expected petroleum income. Petroleum income has decreased by 12.3% compared to the previous year, attributed to a lower petroleum platform.
