Understanding the Financial Landscape
In the period between January and November of the past year, Mexico’s public revenues totaled 7,470,400 million pesos, marking a 5.9% annual increase. However, excluding the support for Pemex, public revenues grew by only 2.3%.
Government Support for Pemex
In September last year, the federal government carried out a debt issuance of 13,800 million dollars and bought back Pemex bonds worth 12,000 million dollars as part of the Strategic Plan 2025-2030. These actions are considered government expenditure but are recorded as Pemex income.
As a result, between January and November, Pemex revenues amounted to 1,711,100 million pesos with support, a 15.8% annual increase. However, without the debt issuance and Pemex bond buybacks, Pemex earnings totaled 817,300 million pesos, a 11.6% annual decrease.
Tax Revenue Contributions
Tax payments from taxpayers generated 4,906,200 million pesos in revenue, an annual growth of 4.6%.
“Tax collection continued to grow, with a real annual increase of 4.6%, marking three consecutive years of growth for the January-November period,” stated Edgar Amador Zamora, head of the relevant financial department.
- The expansion of the taxable base
- Combatting smuggling
- Incorporating digital tools in administrative and fiscal processes
Specifically, changes in foreign trade have yielded positive results. Revenue from imports grew by 19% annually, followed by a 5.4% increase in the Income Tax (ISR), 4% in the Special Production and Services Tax (IEPS), and 1.3% in the Value Added Tax (VAT).
Public Spending: The Role of Pemex Support
On the spending side, the support for Pemex also reflected in increased resource allocation. Between January and November of the past year, the government spent 8,462,100 million pesos, a 2.5% annual increase.
However, excluding Pemex support, public spending was 8,208,300 million pesos, representing a 0.6% annual decrease.
Programmable and Non-Programmable Spending
Despite the support, programmable spending—destined for infrastructure services to cater to the population—was 6,116,100 million pesos, a 3.6% annual decrease.
Non-programmable spending—excluding debt financing costs—was 1,274,300 million pesos, a 5% annual increase.
Financing Costs
The federal government allocated 1,717,000 million pesos to financing costs, an 11.2% annual increase.
