Overview of Fiscal Performance
The Mexico City government has reported a 3.9% real increase in total income during the first half of 2025, compared to the same period in 2024. This amounts to 181,196 million pesos, according to data from the Secretariat of Administration and Finance (SAF) in Mexico City.
Income Sources
- Local Incomes: These grew annually by 21.5%, reaching a preliminary amount of 88,404.4 million pesos.
- Federal Incomes: These stood at 85,789 million pesos.
The growth was primarily driven by the increase in the collection of the Impuesto Sobre Nóminas (ISN), which reached 27,325 million pesos – a 26.4% increase from 2024.
Tax Strategies
Juan Pablo de Botton Falcón, head of SAF, explained that instead of implementing a fiscal condonation program, the city encouraged businesses to regularize their payments. This strategy has supported the strengthening of incomes.
The property tax, with 24,583 million pesos, saw a 20.2% annual increase. De Botton Falcón cautioned against overestimating or underestimating incomes, noting the early-year discounts for annual property tax payments.
Program Licencia Permanente
The “Permanent License” program has proven effective in boosting the city’s income, with 962,457 payments recorded between November 2024 and July 2025, generating 1,443 million pesos – 96.2% of the annual projection.
Financial Confidence
The net total expenditure, including exercised and committed amounts, reached 173,191 million pesos – equivalent to 59.4% of the approved annual program.
“We currently have more incomes than expenses, which speaks to our financial solvency,” said the official. “We are quite confident about the expenditure exercise for the second half of the year.”
Public Debt
Mexico City has experienced a temporary real de-leveraging of 4.8% compared to the end of 2024, with a current balance of 100,817.5 million pesos.
In 2024, Mexico City’s public debt was confirmed at a stable level of indebtedness. Fitch ratified the long-term national rating of Mexico City at ‘AAA(mex)’ with a stable outlook, while HR rated it HR AAA1.
By the second quarter of 2025, Mexico City’s public debt financing cost was 4,885 million pesos, according to the report.
Key Questions and Answers
- Q: What is the total income increase in Mexico City for H1 2025? A: 3.9% real increase, amounting to 181,196 million pesos.
- Q: Which tax primarily contributed to the income growth? A: The Impuesto Sobre Nóminas (ISN) saw a 26.4% increase from 2024.
- Q: How has the “Permanent License” program impacted city incomes? A: The program has been effective, generating 96.2% of the annual income projection.
- Q: What is Mexico City’s current public debt balance? A: 100,817.5 million pesos.
- Q: What was the public debt rating for Mexico City in 2024? A: Fitch ratified the long-term national rating of Mexico City at ‘AAA(mex)’ with a stable outlook, while HR rated it HR AAA1.
