Tesla’s aid to Mexico’s public finances will be limited

The federal government, through the Treasury and Economy secretariats, has promoted these private investments, and is working to provide tax incentives for companies that establish themselves in the south of the country. The president of Mexico has confirmed that Tesla, the electric car manufacturer, will settle in the country, but the arrival of these investments will not save public finances, due to structural problems.

While the government has promoted these private investments, so far this six-year term, all public debt has been higher than the money that has been allocated to infrastructure investment, so current spending is being financed with debt, which is unsustainable, explained an analysis by México Evalúa.

In addition, the collection of income from the ISR payment is depressed, especially that which is for voluntary payments, on the contrary, that which is for collection, that is, that the SAT sends you an invitation, an audit or some reminder.

“When we disaggregate the collection, the primary is depressed, it is a collection that comes from the size of the income of the companies according to their sales, this collection has not reached 2018 levels, and in 2022 it fell in relation to 2021, It is serious news, this reflects more the economic part, the consequence in the economy”, said Campos in the photo Economic Perspectives for a Turbulent Year organized by the IMEF.

Mario Correa, president of the National Committee for Economic Studies of the IMEF, considered that the potential that Mexico has for investments would be greater if the vision of public policy were adjusted; “We could be at significantly higher rates and the investments that could be coming into the country, just because of the need that North America has to relocate and rebuild its supply chains, would mark a very different scenario, but these changes are required. “, said.

Tesla’s investment announcement in Mexico is important because it will put dynamism in the manufacturing sector, and gives a space for expectation that the automotive industry will grow, considered Ociel Hernández, president of the Technical Advisory Committee of the IMEF Indicator and Head of Research & Strategy Mexico at BBVA Mexico.

“The Tesla issue is super news, we don’t know how many cars it will produce, but it has 3 plants that produce 2 million cars, if Tesla produces 300,000 it is a lot for the industry in Mexico, and it gives a space for expectation that the The automotive industry, not just Tesla, can regenerate in this new wave of forward technology,” concluded Hernández.