EconomyPayment to pensions will absorb 20% of the 2023...

Payment to pensions will absorb 20% of the 2023 Budget

The monetary needs to absorb the payment of pensions from the federal government grow every year and in 2023 they will reach a record amount of 1.7 trillion pesos, which represents 20.4% of the total budget contemplated by the Mexican government.

In its Economic Package proposal delivered this afternoon to the Congress of the Union, the Ministry of Finance reports that it will allocate 1.7 billion pesos to the payment of pensions, including those given by the Ministry of Welfare, which represents an increase of 14.3% compared to planned for the current year.

This amount also includes contributory pensions, such as those from Pemex and CFE, and the social and priority programs that the government of Andrés Manuel López Obrador has,

How much does the government spend on pensions?

In 2022, the pension payment was 1.4 billion pesos.

The Secretary of the Treasury, Rogelio Ramírez de la O, said during the delivery of the budget that the allocation of resources for the following year was made so that in 2024 the Welfare pensions reach 6,000 pesos every two months.

The amount that will be allocated to pensions is the highest on record and it is estimated that it will increase in the following years.

To help workers have a better pension, the government will work hand in hand with the National Retirement Savings System Commission (Consar) to promote voluntary savings for workers who have an Afore account.

“The strategy of the Government of Mexico is aimed at achieving social justice and the comprehensive well-being of older adults at retirement age. During 2023, actions will be carried out that will affect a better integration of the three central components of the pension system : the pension for the well-being of older adults, the pension linked to employment and voluntary savings”, highlighted the Ministry of Finance.

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