Overview of Mexico City’s Financial Performance in Q3 2025
The Mexico City government has reported a temporary real debt reduction of 8.0% as of September 2025, in line with the authorized real decrease of 0.5% by federal and local congresses.
Key Financial Highlights
- Increased Local Revenues: The Secretariat of Administration and Finances (SAF) delivered the Quarterly Advance Report to the Mexico City Congress, highlighting a growth in local incomes, an 81.4% increase in planned expenditures, and a real reduction in public debt.
- Total Incomes: The total incomes reached 252,326.7 million pesos, marking a 15.3% increase compared to the 2025 Income Law projections and an annual growth of 8.0%. This performance was driven by higher local income collection, which increased by 21.6% annually to reach 117,357.6 million pesos.
- Income Breakdown: Within local incomes, Predial tax collection grew by 22.9%, and Nominal wage tax increased by 33.3% compared to the same period last year. Federal origin incomes, however, decreased by 2.4% annually to 123,365.2 million pesos.
- Planned Expenditures: The report indicates that total net expenditure, exercised and committed, reached 237,389.4 million pesos, an 81.4% increase compared to the approved annual program. Of this total, exercised expenditure amounted to 187,540.2 million pesos, primarily concentrated in programmable expenditure at 175,972.4 million pesos.
- Debt Reduction: Mexico City reported a temporary real debt reduction of 8.0% as of September 2025 compared to the end of 2024, aligning with the authorized real decrease of 0.5% by federal and local congresses. The public debt stood at 99,301.5 million pesos by the end of Q3.
Key Questions and Answers
- What is the main topic of this report? The report focuses on Mexico City’s financial performance in Q3 2025, highlighting a surplus in revenues and reduction of debt.
- What factors contributed to the increase in local incomes? The growth was primarily driven by higher collection of Predial tax (22.9%) and Nominal wage tax (33.3%).
- How did federal origin incomes perform in comparison to local incomes? Federal origin incomes decreased by 2.4% annually, while local incomes grew by 8.0% annually.
- What is the total net expenditure and how was it allocated? The total net expenditure reached 237,389.4 million pesos, with 187,540.2 million pesos allocated primarily to programmable expenditure (175,972.4 million pesos).
- What is the current public debt status in Mexico City? As of September 2025, the public debt in Mexico City stands at 99,301.5 million pesos following a temporary real debt reduction of 8.0%.
