More than 82 pesos out of every 100 of the budget will be for mandatory expenses

The increase in these expenses reduces the margin for more profitable concepts, such as the investment budget, which is the basis for triggering and attracting private investment, and which for the following year totals 843,312 million pesos, a lower amount than the amount authorized for this year. , which is 958.1 billion. It also means cuts for other areas that have been declining in recent years, such as education and health.

“The priorities of a government are reflected in the budget. If sufficient resources are not allocated, the proposals remain only good wishes. The 2025 Economic Package rather shows a survival plan for the government, and is not committed to economic growth, health, security, or the reduction of inequality,” commented Mariana Campos, general director of México Evalúa at a conference press.

According to the director of México Evalúa, there are actions that can be promoted to reduce these mandatory expenses, increase income and avoid discretionary cuts, such as strengthening the fiscal autonomy of entities, in addition to establishing a medium-term fiscal framework and making the destiny of the debt. Also estimate the spending that finances rights, such as health, based on the people to be served, to protect it from discretionary cuts, in addition to encouraging investment from the private sector in the face of the government’s budget limitations.

In proportion to GDP, physical investment spending will represent 2.3%, the lowest in more than a decade, its cuts are concentrated in road, water and fuel infrastructure. This situation represents a limitation for the generation of future income, economic development and attraction of investments, highlights México Evalúa in an analysis of the PEF 2025.

“When you have the pressure to reduce a deficit (the difference between expenses and income), mandatory increasing expenditures for pensions or debt, and less oil income, investment spending for infrastructure is one of the most susceptible, since it is not mandatory, Its execution lies mainly in not launching new projects or canceling those announced; there is also the possibility of cutting other areas such as health,” says Christopher Cernichiaro, postdoctoral researcher at the Metropolitan Autonomous University (UAM).

According to him Decree approved early Thursday morning by deputies for the following year there are no resources contemplated for multi-year expenditures for infrastructure projects, nor are new projects by Public Private Associations contemplated.

México Evalúa highlights that although the IMSS-Wellness budget will increase by 29.2 billion pesos, this does not compensate for the cuts in the Ministry of Health, of 33.4 billion; and the Contribution Fund for Health Services (FASSA), of 57.3 billion. As a consequence, the health budget for people without social security will fall 22%, equivalent to 84,000 million, compared to 2022. Thus, spending for people with social security will be 95% higher than that of the uninsured, creating the greatest gap in 20 years.