EconomyGasoline taxes fall, but oil revenues and ISR save...

Gasoline taxes fall, but oil revenues and ISR save finances

The increase in oil prices and money transfers to the government for non-recurring income such as financing, termination of trusts or activation of financial emergency funds helped cushion the lower dynamism in tax collection during the January-August period.

Figures from the Ministry of Finance and Public Credit released this Friday detail that the budgetary income of the public sector reached 4,380 billion pesos (mdp), an amount that is 247.536 million pesos (mdp) higher than what was foreseen in the program and that represents an annual growth of 4.4% in real terms.

In the reference period, tax collection registered a decrease of 0.4% in real terms compared to January-August 2021, while remaining below the approved amount of 61,375 million pesos in the context of the application of stimuli to the IEPS of fuels.

The little dynamism in the collection was the effect of the gasoline subsidies, since -284,749 million pesos were collected by IEPS on fuels compared to what was programmed.

Inside, the ISR collection observed during January-August was 158 thousand 795.2 million pesos above the programmed and registered a real annual increase of 14.8%, spinning 9 consecutive months of growth. For its part, VAT collection increased 2.7% in real terms in the annual comparison and exceeded what was forecast for the period by 36,518 million pesos.

Help ISR and oil

However, as of August, oil revenues were above the scheduled figure at 178,084 million pesos; 70% more than expected, driven upwards by an increase of 38.2 dollars per barrel (dpb) in the average price of the Mexican oil mix with respect to the program, which offset the drop in oil production of 83 thousand barrels per day ( mbd). In its annual comparison, said item was higher by 35.8% in real terms compared to the January-August period of the previous year.

In addition, during the analysis period, non-tax or non-recurring income such as financing, extinction of trusts or activation of emergency funds, were located at 248,130 million pesos, an amount higher than the forecast of 101,136 million pesos.

Spending greater than approved

Between January and August, the total net expenditure reached 4,652 bpd, an amount higher than that registered in the same period of the previous year by 3.2% in real terms and higher than what was foreseen in the program by 3,646.8 million pesos.

Expenditure on social protection showed real annual growth of 9% at the end of August.

While the participations to states and municipalities were higher than the program by 228 million pesos, derived from the good performance of the participable federal collection, which registered an annual increase of 6.8% in real terms.

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