Background on the Situation
In a period marked by economic uncertainty, with public revenues falling short of expectations and pressure to achieve fiscal consolidation this year, the resources allocated to healthcare have reached their lowest level in over a decade. According to information released by the Secretaría de Hacienda y Crédito Público (SHCP), spending on healthcare in the first quarter of 2025 dropped by 14.3% annually.
Key Figures and Historical Context
The Informe de Finanzas Públicas y la Deuda Pública report revealed that the expenditure on healthcare amounted to 151,733 million pesos in the first quarter. This is the lowest level since 2010, when it stood at 138,889 million pesos. Historically, healthcare spending has been below international recommendations, often surpassed by other essential sectors like pensions and debt servicing.
- In the first quarter of 2025, pensions and debt servicing absorbed over 300,000 million pesos each.
- Healthcare spending represented 2.7% of the GDP last year, which has historically fluctuated between 2% and 2.7%. However, the WHO recommends allocating 6% of the GDP to healthcare.
Impact of Weak Public Revenues
México Evalúa, an organization, attributes the decline in healthcare spending to weak public revenues. Although public income grew by 11% annually, it fell short of the planned amount by 63,249 million pesos.
“A significant portion of the decline in public healthcare spending this year is due to the government failing to adhere to the approved budget for this sector. Both systems serving insured and uninsured individuals have faced austerity measures applied arbitrarily.”
There was an underspending of 23%, meaning that the planned 45,400 million pesos for the period were not utilized.
Hacienda’s Response
During the latest quarterly conference, Hacienda officials were questioned about underspending and cuts in the healthcare sector for 2025. Bertha Gómez Castro, subsecretaría de Egresos, denied any cuts and described them as “adjustments” to achieve the government’s fiscal consolidation goal for the year.
“The spending was not cut; it was 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 proposing or considering further adjustments to spending.”
She added that in the case of healthcare, the first quarter showed a decline and underspending due to overpriced medication acquisitions, which has hindered the government’s ability to purchase them. She expects this issue to be resolved in the second quarter, leading to a significant increase in spending.
Key Questions and Answers
- What is the main issue? The primary concern is the significant drop in healthcare spending, which has reached its lowest level in over a decade due to weak public revenues.
- What are the historical figures? Healthcare spending in the first quarter of 2025 was 151,733 million pesos, the lowest since 2010 when it was 138,889 million pesos. Historically, healthcare spending has been below the WHO’s 6% GDP recommendation.
- Why is there a decline in healthcare spending? México Evalúa attributes this to the government failing to adhere to the approved budget for healthcare and applying arbitrary austerity measures.
- What is Hacienda’s stance? Hacienda denies any cuts, describing the adjustments as necessary to achieve fiscal consolidation goals for 2025.
