Tax Revenue Increases by 5.3% in Mexico Amid Lower Deficit and Sustainable Debt

Between January and October, tax revenues reached 4 trillion 80 billion pesos, marking a 5.3 percent real annual increase. During the same period, budget deficits were lower than expected, and debt remained at a sustainable level, according to the Finance Ministry.

The financial report for October states that the Federation’s total income amounted to 6 trillion 186 billion pesos, a 2.1 percent real increase compared to the first ten months of 2023. This figure exceeded the budget forecast for 2024 by 60 billion pesos.

The Finance Ministry noted that the 5.3 percent real annual growth in tax income is “the second highest growth rate since 2016 for the January-October period,” driven by strong economic activity and effective revenue collection.

The increase was supported by growth in most components, particularly those linked to economic activity. Oil revenues totaled 829 billion pesos from January to October, reflecting a real decrease of 12.4 percent due to “lower crude production and a decrease in natural gas prices.”

Petróleos Mexicanos (Pemex) accounted for 84 percent of total oil revenues, achieving a real growth of 10.1 percent due to measures aimed at improving its operations.

Total expenditures from January to October reached 7 trillion 225 billion pesos, representing a 6.4 percent increase compared to the same period last year. However, this amount was 142 billion pesos lower than the 7 trillion 368 billion pesos approved by Congress for the year.

Social development spending increased by 6.9 percent in real terms, surpassing the average growth rate of 3.8 percent over the past five years.

Consequently, the budget recorded a deficit of 1 trillion 39 billion pesos in the first ten months of 2024. This deficit is 203 billion pesos lower than projected but higher than the 701 billion pesos observed in 2023.

At the end of October, the total historical financial needs of the public sector reached 16 trillion 802 billion 526.2 million pesos. Meanwhile, the net debt of the federal public sector stood at 16 trillion 949 billion 818.6 million pesos.

The net debt of the federal government was reported as 14 trillion 680 billion 941 million pesos as of October.