Background on the Mexican Government and Health Spending
The Mexican federal government has continued to keep the health spending key closed in the third quarter of the year, amidst an economic downturn and efforts to reduce fiscal deficit for the year. The Secretaría de Hacienda y Crédito Público (SHCP), led by Edgar Amador Zamora, reported that from January to September last year, functional spending on health totaled 615,424 million pesos. This represents a 4.1% annual decline compared to the previous year.
Historical Context and Current Situation
Historically, health spending has been a challenge for public finances and successive governments, as it remains far below the recommendation of the World Health Organization (WHO). Despite this, the situation has not changed even after the pandemic.
- In 2021, health spending accounted for 2.7% of the Gross Domestic Product (GDP), while WHO recommends a level of 6%.
The Mexican government has been discussing the universalization of healthcare to ensure better access and attention for Mexican citizens. Subsecretary of Expenditure, Bertha Gómez, stated in October last year:
“We are moving towards universal healthcare. No more IMSS, no more ISSSTE, no more IMSS-Bienestar, etc. We will create a universal healthcare system that addresses all the issues in health, not just one or two aspects.”
However, during a working meeting with legislators regarding the budget for the following year, Gómez contradicted herself when asked about the timeline for implementing this universal healthcare system. She stated that neither IMSS nor ISSSTE would disappear, only ensuring no restrictions for individuals to be attended in any medical unit of these systems.
Impact on Health Spending
Agustin Rodriguez Bello, head of the Design Unit for Budgeting, Gasto Control and Tracking of the Secretaría de Hacienda, explained that the decrease in health spending should be observed alongside the growth of IMSS-Bienestar, which is crucial for centralizing health services and attention.
- By the third quarter, 132,661 million pesos had been disbursed in IMSS-Bienestar, marking a 42.3% annual increase.
Bello emphasized the importance of observing both health spending and social protection aspects when analyzing the variation in functional health spending.
Additionally, Bello mentioned that delays in health spending execution have been caused by some medical suppliers’ non-compliance, affecting the situation since mid-year.
Future Health Spending Plans
For the upcoming year, the government plans to open the health spending key again. According to the approved Presupuesto de Egresos de la Federación (PEF) 2026, 996,254 million pesos will be allocated for health spending.
- This amount represents a 5.8% real increase compared to this year’s allocation, but it still falls short of the WHO recommendation at 2.6% of GDP.
- The planned health spending will account for 9.9% of the total public expenditure, which is historically high at 10.1 trillion pesos.
Key Questions and Answers
- What is the current state of health spending in Mexico? Health spending has fallen by 4.1% annually in the third quarter of 2023, which is the largest decline recorded since 2018.
- Why is the Mexican government keeping the health spending key closed? The government aims to reduce fiscal deficit amidst an economic downturn.
- What is the historical context of health spending in Mexico? Health spending has consistently been below the WHO recommendation, and this situation persists despite the pandemic.
- What is the Mexican government’s plan for healthcare universalization? The government aims to create a comprehensive, universal healthcare system addressing all health issues.
- What factors have contributed to the decrease in health spending? Delays in execution due to non-compliance by some medical suppliers have affected health spending.
- What are the plans for health spending in the upcoming year? The government intends to allocate 996,254 million pesos for health spending in 2026, representing a 5.8% real increase from this year.
