Introduction to the PPEF 2026 and Its Significance
The Secretaría de Hacienda y Crédito Público (SHCP) has unveiled the Proyecto de Presupuesto de Egresos de la Federación (PPEF) 2026, proposing a total of 2,810,800 million pesos in federal transfers to federated entities and municipalities for the upcoming fiscal year.
This amount signifies a real growth of 3.0% compared to the approved budget for 2025, as per the official variation tables.
Breakdown of Fund Allocation
The Fondo General de Participaciones will receive 1,456,000 million pesos, marking a real increase of 5.0% from 2025. These funds are at the disposal of states and municipalities for their own use.
For Ramo 33, a sum of 1,127,100 million pesos is allocated, reflecting a real growth of 2.6%. These resources are earmarked for specific purposes such as education, health, and social infrastructure. They include funds like the Fondo de Aportaciones para la Nómina Educativa (FONE) and the Fondo de Aportaciones para los Servicios de Salud (FASSA), along with contributions to the Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado (ISSSTE), among others.
The proposed budget stipulates that the Secretaría de Bienestar must publish guidelines by February 2026, enabling the allocation of up to 60% of the Fondo de Aportaciones para la Infraestructura Social (FAIS) to urbanization projects, pavement, rural roads, bridges, reconstruction works, and highways.
For Other concepts, 227,700 million pesos are allocated, representing a decrease of 6.2%.
Key Details about the PPEF 2026
The PPEF 2026, totaling a net expenditure of 10,114,800 million pesos (10.11 billion pesos), indicates a real growth of 5.9% from the previous year. Of this total, transfers to federated entities and municipalities (2.81 billion pesos) account for approximately 27.8% of the projected total expenditure for the upcoming fiscal year.
The budget approval process commenced on September 8th with the SHCP’s delivery of the PPEF to the Congress of the Union by the federal executive. The House of Representatives now holds exclusive authority to analyze, debate, and modify the proposed budget. The deadline for this process is November 15th. Once approved, the decree is sent to the federal executive for publication in the Diario Oficial de la Federación (DOF).
Who is the SHCP, and Why is This Relevant?
The Secretaría de Hacienda y Crédito Público (SHCP) is Mexico’s finance ministry, responsible for formulating and executing the federal budget. Its proposals significantly impact the financial resources available to federated entities (states) and municipalities for public services, infrastructure, and social programs.
Understanding the PPEF 2026 is crucial for these entities, as it outlines the financial support they will receive and helps them plan their budgets accordingly. It also sheds light on the Mexican government’s priorities for the upcoming fiscal year.
Impact on Key Sectors
Education: The FONE, which is part of the Ramo 33 allocation, supports teachers’ salaries. Adequate funding ensures better working conditions and attracts more qualified educators, ultimately improving the quality of education.
Health: The FASSA and other contributions to health-related institutions like the ISSSTE bolster the healthcare system, providing better services and facilities for Mexican citizens.
Infrastructure: The FAIS allocation focuses on improving urban and rural infrastructure, such as roads, bridges, and public spaces. This investment enhances connectivity, supports economic growth, and improves the quality of life for communities.
Key Questions and Answers
- What is the PPEF 2026? The Proyecto de Presupuesto de Egresos de la Federación (PPEF) 2026 is Mexico’s federal budget proposal for the upcoming fiscal year, outlining proposed expenditures and transfers to federated entities (states) and municipalities.
- Who proposed the PPEF 2026? The proposal was put forward by the Secretaría de Hacienda y Crédito Público (SHCP), Mexico’s finance ministry.
- What is the total proposed expenditure for PPEF 2026? The total proposed expenditure is 10,114,800 million pesos (10.11 billion pesos).
- What percentage of the total expenditure is allocated to federated entities and municipalities? Approximately 27.8% of the total expenditure is designated for transfers to federated entities and municipalities.
- What are the key sectors receiving funding in PPEF 2026? The main sectors receiving funding are education, health, and infrastructure.
