The Mexican Congress approved a leaner MXN$9.3 trillion ($460.2 billion) budget for 2025, marking President Claudia Sheinbaums first major economic decision.This budget reveals a significant shift in Mexicos fiscal strategy, cutting investment while expanding social programs.
The ruling party Morena pushed the budget through Congress in record time just four hours for general discussion and eight for specifics.The 349-129 vote split highlights the administrations strong legislative control, enabling swift approval despite opposition concerns.
The budgets core numbers tell a compelling story.Government spending will decrease by 1.9% in real terms, targeting a deficit reduction from 5.9% to 3.9% of GDP.
This represents Mexicos most aggressive fiscal tightening since the 1990s.The plan allocates MXN$6.4 trillion ($316.7 billion) to programmable spending and MXN$2.7 trillion ($133.6 billion) to non-programmable expenses.
A last-minute reallocation of MXN$44.422 billion ($2.198 billion) demonstrates clear political priorities.Mexicos 2025 Budget: The Countrys Most Aggressive Fiscal Tightening Since the 1990s.
(Photo Internet reproduction)The administration cut MXN$13.476 billion ($666.9 million) from the Electoral Institute and MXN$14.042 billion ($694.9 million) from the Judicial Branch.
These funds now flow to education, infrastructure, and new government agencies.Mexicos Budget StrategyThe budget makes two strategic gambles.
First, it assumes 2-3% GDP growth, well above the central banks 1.2% forecast.
Second, it reduces physical infrastructure investment by 12.7% while expanding social programs to MXN$835.706 billion ($41.36 billion).External factors add complexity to this fiscal equation.
The potential return of Donald Trump to the United States presidency could significantly impact Mexicos trade-dependent economy.Additionally, global economic uncertainties may further influence its economic stability.
Meanwhile, 84% of the budget remains tied to mandatory spending, including debt payments and pensions.This budget sets Mexico on a path of fiscal tightening while maintaining social spending a delicate balance that will test Sheinbaums economic management skills during uncertain global conditions.