Background on Juan Pablo de Botton Falcón
Juan Pablo de Botton Falcón is the Secretary of Administration and Finance for the government of Mexico City. His role involves managing the city’s finances, including tax collection and budget allocation. As one of the key figures in Mexico City’s government, his statements on financial matters carry significant weight and influence the city’s fiscal policies.
Increases in Local Taxes
During the first quarter of 2025, Juan Pablo de Botton Falcón announced a 22% increase in local tax revenues for the Mexico City government. This growth is primarily attributed to two significant tax sources:
- Property Tax (Impuesto Predial): This tax saw a 27.8% increase, indicating stronger property ownership and higher property values in Mexico City.
- Payroll Tax (Impuesto sobre Nóminas): This tax experienced a 25.5% rise, suggesting that businesses in the city are expanding and hiring more employees.
The total income for the Mexico City government grew by 11.4% annually in Q1 2025, amounting to approximately 97,764.8 million pesos – a 15.2% increase compared to the established budget in the CDMX Ley de Ingresos 2025.
Spending and Investment
The net total expenditure during this period was 113,511 million pesos, marking a 38.9% advancement over the approved program. This growth in revenue and controlled spending allows the Mexico City government to strengthen its commitment to investment, particularly in infrastructure and public services.
Preparations for the 2026 FIFA World Cup
A significant portion of the increased tax revenue will be allocated to preparations for hosting the 2026 FIFA World Cup, co-hosted by Mexico, the United States, and Canada. The investments will primarily focus on improving urban areas and infrastructure for both tourists and local residents.
- Regeneration and revitalization projects in Santa Úrsula, Pueblo de Santa Úrsula, and Pueblo de San Lorenzo Huipulco.
- Enhanced water supply and improved wastewater management systems.
- Reordering public commerce along streets and construction of bicycle parking facilities.
- Implementation of a comprehensive mobility plan, including trolleybus routes and expansion of the light rail system.
- Renovation and modernization of Metro stations, acquisition of new double-decker trains, and upgrades to escalators and other infrastructure.
- Creation of a 34-kilometer ciclovía (“La Gran Tenochtitlán”) connecting Calzada de Tlalpan to the Zócalo.
- Pedestrian bridge construction and lighting improvements along Tlalpan’s floating pedestrian walkway.
- Implementation of Centrobús electric bus lines and upgrading public lighting across the city center.
Additional Investments in Infrastructure and Security
Beyond World Cup preparations, the Mexico City government plans to invest in various other areas:
- Infrastructure and Mobility: With 10,000 million pesos from the payroll tax, the government aims to fund two cablebus lines, a new metrobús line on Tlalpan calle, water system improvements, and Metro upgrades.
- Electromobility: A fideicomiso (trust fund) will be established using revenue from driving license payments to support electric vehicle infrastructure and non-motorized transportation projects.
- Security Enhancements: The government intends to bolster security through increased police salaries, enhanced video surveillance systems, and modernization of patrol vehicles, equipment, and communication tools.
Debt Management
Juan Pablo de Botton Falcón emphasized that the city will maintain its debt-to-GDP ratio at 0.5% and adhere to the 3,500 million pesos endeudment limit. The planned green bond issuance will respect this cap and contribute to the city’s deleveraging efforts.
Key Questions and Answers
- Who is Juan Pablo de Botton Falcón? He is the Secretary of Administration and Finance for the Mexico City government, responsible for managing finances and tax collection.
- What taxes increased in Q1 2025? Property tax (Impuesto Predial) rose by 27.8%, and the payroll tax (Impuesto sobre Nóminas) increased by 25.5%.
- How will the additional tax revenue be used? The funds will support World Cup preparations, infrastructure projects, security enhancements, and debt reduction efforts.
- What is the green bond issuance plan? The city plans to issue a green bond between July and August 2025, adhering to the debt ceiling while generating deleveraging.
