Mexico | Lower oil-related income affects public revenue in the first quarter

Summary

Public revenue in the first quarter was MXN 117,486 million (0.4% of GDP) below budget due to lower oil-related income as international prices of a crude oil barrel went down.

Key points

• Key points:
• Tax revenue was MXN 41,283 million (0.1% of GDP) below budget since VAT intake was MXN 76,986 million lower as there was an 11.6% annual real increase of reimbursements and compensations.
• Despite public revenue being below budget, the performance of total public spending in the first quarter allowed the budget deficit to be approximately MXN 100,000 million below budget.
• The containment of discretionary spending for several quarters does not seem sustainable to keep fiscal discipline in a context of public income with an oil-related component still relevant.

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