“This reduction is mainly due to the drop in oil revenues, which It is related to the appreciation of the exchange rate more than to the decrease in the international price of oilcompared to what was observed in the first five months of the previous year,” reported the SHCP.
The Mexican peso closed the first half of the year with an appreciation of 12.2% ranking as the second best performing emerging currency due to interest rate differentials between Mexico and the United States and positive economic data in Mexico.
Meanwhile, the price of a barrel of oil estimated by the Treasury and with which the income is programmed, is 78.5 dollars, while between the period of January-May it has been observed at 67.2 dollars.
Less money for states
As a consequence of the reduction in oil revenues, the money that the federal government transfers to the states decreased 4.9% in real terms. “This situation resulted in a 1.2% reduction in federalized spending compared to the same period of the previous year.”
In May alone, there was an increase in budget revenue of 11.7% per year in real terms. This growth was driven by a 4.6% real annual increase in tax collection during the month, as well as by higher non-tax revenues, which were 2.7 times higher than those observed in the same month of the previous year in real terms.
For its part, oil revenues remained practically constant in the annual comparison in real terms, highlighted the Treasury.
Public debt reaches 11.7 trillion pesos
Meanwhile, the net debt of the federal government was located at 11,705 trillion pesos, of which 82.5% corresponds to internal debt. In addition, 75.5% of government securities were located at a fixed rate and long term. The Historical Balance of the Financial Requirements of the Public Sector amounted to 13,876 bpd, while the net debt of the Public Sector stood at 14.11 trillion pesos.
The Ministry of Finance highlighted “its commitment to use external debt in a strategic and complementary financing manner, as long as favorable market conditions are achieved. During the month of May, no market placement operations were carried out”.
