Mexico | Control of operating expenditure and lower fiscal burden on Pemex

Summary

The timely decision of the government to continue alleviating the fiscal burden on Pemex helped it reduce the share of royalties and duties to 32.8% in 2020 after reaching a peak of 74.1% in 2005. Nevertheless, the lower fiscal burden on Pemex will be reflected on more fiscal pressure for the federal government.

Key points

• Key points:
• The strong fall of Pemex’s own income in 2020 contributed to the generation of a negative financial balance of 110,875 million pesos
• The increase in Pemex’s discretionary spending in 2020 was mainly due to the higher amount of total investment as it went up to 231,639 million pesos in 2020 from 196,189 million pesos in 2019

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