Mexico | Public spending driven by subsidies, transfers and contributions in 1Q24

Summary

Tax revenue was MXN 8,922 million (0.03% of GDP) below budget since the excise taxes on fuels intake was below budget despite its real annual increment of 195.1% in 1Q24.

Key points

• Key points:
• Oil-related income in the first quarter of 2024 was MXN 34,393 million (0.10% of GDP) below budget due to a lower volume of crude oil exports.
• In spite of public revenue being below budget, the performance of total public spending in the first quarter allowed the budget deficit to be approximately MXN 132,956 million below budget.
• The continuous containment of Pemex expenditures does not seem to be a sustainable strategy to keep fiscal discipline in a context of higher pressure from social spending and in the absence of a fiscal reform.

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