The year 2024 will be in which the public finances of Mexico reach their fiscal consolidation to achieve the national project of the administration in charge of Andrés Manuel López Obrador, and guarantee an orderly political transition at the end of the current six-year term, the secretary said on Tuesday. of Finance and Public Credit, Rogelio Ramírez de la O.
“It is very important to highlight that, on the instructions of the President of the Republic, this economic package lays the foundations for planning a responsible, orderly and smooth transition to the next administration. It includes an ambitious investment component hand in hand with the strengthening of revenues, which will allow us to make 2024 the year of fiscal consolidation,” said the senior official, appearing in plenary session of the Chamber of Deputies.
He explained that with the proposal of the 2023 economic package, the macroeconomic indices and the country’s currency will be strengthened with an adequate capitalization of the Mexican financial system, and the construction of liquidity pools that allow public finances to withstand external shocks, as well as provide margin of action for the government that enters.
“We are convinced that the continuity of the national project necessarily passes through stability and fiscal discipline,” said Ramírez de la O.
Debt will be stable
The federal official stressed that the current administration has seen the smallest increase in the balance of the debt compared to previous governments.
“In real terms, the increase in public debt, in the fourth year of the administration, will have increased 7% from the base of December 2018 when the fiscal management of this administration began. It should be noted that this increase is significantly less than the average growth of 27% observed in the three previous administrations,” he said to applause from members of the Morena and Labor Party parliamentary groups.
More investment in infrastructure
The head of public finances, accompanied by his work team, highlighted that in 2023 the largest amount seen since 2012 will be used for infrastructure projects (physical investment), the last comparable data due to changes in the accounting rules of public investment .
In total, 1,190 billion pesos (bp) will be allocated for investment, of which the equivalent 70% will be for physical investment.
Among the public infrastructure projects that will be promoted with this budget, the Mayan Train and the development of the Isthmus of Tehuantepec stand out. Hydraulic projects such as Healthy Water for the Lagoon. Highways and connectivity such as the continuity of the construction of the Mexico-Toluca Train, and the Mitla-Tehuantepec highways. As well as the rehabilitation of refineries and projects for the exploration and production of hydrocarbons.
Gasoline subsidies will continue
Within the economic package for 2023, it is stated that despite the subsidies that the government grants to gasoline, public finances will remain healthy, according to the Treasury, these prevented inflation from reaching levels of 12%.
“Even with this subsidy, to date, public revenues, both oil and non-oil, are higher than the goals established in the economic package approved for 2022. The balance of the debt is expected to close at 48.9% of GDP, two percentage points below the amount approved in the 2022 economic package by this Congress. This is thanks to strong revenue performance and prudent spending,” he said.
Likewise, it is expected to close the year with a primary surplus of 0.1% of GDP, which compares favorably with the deficit of 0.3% of GDP forecast in the approved package for 2022.