The main reason was the subsidies that were granted to gasoline, since by reducing the Special Tax on Production and Services (IEPS) on fuels, 397.298 million pesos were lost, which were slightly offset, in tax matters, by a surplus in the collection of Income Tax (ISR) of 196,205 million.
“The price of gasoline in Mexico has a significant impact due to transportation costs, since 60% of it is distributed by highways, so it is translated into inflation. Controlling the increase in prices in 2022 was important because it could have increased to 36 pesos per liter, which would have caused inflation of 12% and up to 14% if indirect effects were taken, in addition to a higher interest rate of 10.5%. reported at the end of 2022”, the Undersecretary of Finance, Gabriel Yorio, commented in a conference.
In addition to excess income from ISR, VAT had an extra of 8,024 million pesos. The higher price of crude oil worldwide helped to collect more income from oil rents, since an additional 394,508 million were reported, a lower figure than the shortage due to the gasoline subsidy, but in the total, considering other concepts, the surplus, compared to what was programmed, it is for 422,462 million pesos.
“It was a decision that had costs, but these could be faced due to higher oil revenues, we have almost a coverage, it is not one to one, but we have an additional flow due to oil prices, it could also be compensated with other concepts such as VAT and ISR above what was programmed”, explained Yorio.
With the results, no more debt had to be taken than the one scheduled and approved by Congress, which reached 49.4% of GDP; 1.6 percentage points less.
“This result was possible due to the good performance of budget revenues, which even after the IEPS subsidy, were 1.5% of GDP higher than budgeted,” said the Treasury report.