Public spending in Mexico stagnates in the first 5 months of 2022

Public spending in Mexico stagnates in the first 5 months of 2022

The Treasury explained that from January to May of this year, the expense for the payment of payroll to public servants (personal services) fell 3.8%, while that corresponding to the payment of materials and supplies for the operation of public institutions fell 20.6%.

Capital spending, which serves to fuel economic growth, also reported a 2.9% drop.

Figures from the Public Finance and Debt Report indicate that the expenditure of autonomous bodies was reduced by 8.2%, that is, 13,448 million pesos (mdp) less compared to what was programmed; Pemex’s was also reduced by 14.6%, which represents 78,378 million pesos less than budgeted.

states win

While current spending was reduced, transfers of resources from the federal government to the states through Participaciones grew by 13.5% in real annual terms, and the financial cost of public debt increased by 1.3%.

Participations to states and municipalities were higher by 53,334 million pesos due to the good unemployment of the participating federal collection, which registered an annual increase of 13% in real terms, the Treasury pointed out.

Another item that increased its spending was pension spending with 5.8% more annual real.

It should be noted that Participations, pensions and the financial cost are mandatory expenses for the public sector.