Key Cities and Their Debt Levels
By the third quarter of 2025, the debt of Hermosillo (Sonora), Monterrey (Nuevo León), León (Guanajuato), Guadalajara (Jalisco), and Mexicali (Baja California) accounted for 22.8% of the total municipal debt, equivalent to 6,455 million pesos, according to data from Mexico’s Secretaría de Hacienda y Crédito Público (SHCP).
- Hermosillo: 1,640 million pesos
- Monterrey: 1,496 million pesos
- León: 1,254 million pesos
- Guadalajara: 1,180 million pesos
- Mexicali: 886 million pesos
Overall, the municipal debt in Mexico decreased by 6.4% year-over-year in real terms by the third quarter of 2025, indicating a continued slowdown in local borrowing since the last decade, especially after the implementation of the Fiscal Discipline Law.
Out of more than 2,450 municipalities in the country, 531 reported public debt, which is 21.6% of the municipalities in Mexico. The total municipal debt by September 30, 2025, was 28,296 million pesos.
Debt Distribution Among States
By the reported period, 64.6% of the total municipal debt was concentrated in five federal entities. Jalisco led with 16.2% of the total balance, followed by Nuevo León with 15.8%, Sonora with 13.6%, the State of Mexico with 12.4%, and Quintana Roo with 6.6%.
The municipalities of Hidalgo, Querétaro, and Tlaxcala did not report public municipal debt since the third quarter of 2024.
Debt per Capita
Cozumel had the highest debt per capita, with over 4,432.0 pesos per person, according to an analysis by the Center for Studies of Public Finances (CEFP) up to the third quarter of 2025.
- Puerto Peñasco: 4,308.5 pesos per person
- Ónavas: 3,266.7 pesos per person
- San Marcos: 2,869.2 pesos per person
- San Nicolás de los Garza: 2,080.4 pesos per person
In contrast, Jiutepec (Morelos) has the lowest level of debt per capita, with only 0.9 pesos per person. Chapa de Mota (Estado de México) and Santiago (Nuevo León) follow with 0.1 pesos and 0.2 pesos per person, respectively.
Debt Financing Sources
48.8% of municipal financial obligations were contracted with multiple banks, while 44.6% corresponds to financing from development banks. Only 4.7% of the balance is placed in the stock market, and the rest comes from other creditors.
Regarding payment guarantees, 90.5% of the debt is backed by federal participations received by municipalities, meaning that transferred income from the federal government is the primary source for honoring these liabilities.
Key Questions and Answers
- Which municipalities hold the most public debt? Hermosillo, Monterrey, León, Guadalajara, and Mexicali hold 22.8% of the total municipal debt.
- How has municipal debt evolved in recent years? Municipal debt has decreased by 6.4% year-over-year in real terms since the last decade, with a slowdown especially after the Fiscal Discipline Law’s implementation.
- What percentage of municipalities in Mexico have public debt? 21.6% of municipalities in Mexico reported public debt, with a total debt of 28,296 million pesos by September 30, 2025.
- Which states have the highest municipal debt concentration? Jalisco leads with 16.2%, followed by Nuevo León (15.8%), Sonora (13.6%), the State of Mexico (12.4%), and Quintana Roo (6.6%).
- Which municipalities have the highest and lowest debt per capita? Cozumel has the highest debt per capita, while Jiutepec has the lowest. Other notable municipalities include Puerto Peñasco, Ónavas, San Marcos, and San Nicolás de los Garza with high debt per capita, and Chapa de Mota and Santiago with low debt per capita.
- What are the primary sources of municipal debt financing? Multiple banks finance 48.8% of municipal financial obligations, while development banks cover 44.6%. Only 4.7% is placed in the stock market, and the rest comes from other creditors.
- How are municipal debts guaranteed? 90.5% of the debt is backed by federal participations received by municipalities, with transferred income from the federal government being the primary source for honoring these liabilities.
