Mexico | Fiscal discipline will help to meet the target for the primary balance

Summary

In June the historic balance of public sector borrowing requirements (HBPSBR) was 47.3% vs. 52.4% of GDP in December of 2020. Among other reasons, the GDP growth forecast for 2021 significantly contributed to the reduction in the HBPSBR between December 2020 and June 2021.

Key points

• Key points:
• During the first semester the primary balance was MXN 104,193 million, a figure that compares very favorably to the target of MXN 269 million for such balance in 2021
• The better performance of non-tax revenue made it possible for total revenue to be above budget during the first semester
• Public revenue shows a real annual increase of 7.3% vs. 4.1% for public spending in the first semester

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