Saturday, September 6, 2025

Transfers to inefficient state companies hurt health, education: economist

Government transfers to two inefficient state-owned companies are an obstacle to the allocation of greater resources to sectors such as health and education, according to a think tank budget specialist.

Mariana Campos, coordinator of México Evalúa’s public expenditure and accountability program, told a business conference she was concerned about the government’s allocation of large sums of money to state oil company Pemex and the Federal Electricity Commission.

Money allocated to address their “inefficiency” diverts resources from other areas, she said.

“The cost … of investing in companies that are not efficient is extremely high,” Campos said, adding that the health and education sectors are left with “two measly pesos” each, despite the challenges they face.

“… Thirty per cent of schools have serious infrastructure problems,” she said.

According to a México Evalúa analysis, investment in Pemex – which has more than US $100 billion in debt – will total 381 billion pesos (US $18.4 billion) in 2022, a 20.8% increase compared to this year.

Campos said the government’s absorption of Pemex liabilities is not a bad idea because it could help the state oil company obtain lower interest rates for debt repayment. However, assisting the company without requiring it to undertake reforms and restructure is not the right thing to do, she said.

“It’s a company that perhaps needs to be less integrated,” Campos said, suggesting that its component parts should be broken up. “… The structure [of the company] is still very big …”

With reports from Reforma 

Have something to say? Paid Subscribers get all access to make & read comments.
Workers install scaffolding in front of a giant Mexican flag

Mexico’s week in review: Bilateral tension and cooperation on display as Mexico welcomes its new judiciary

0
Other headlines included canceled Mexican Independence celebrations in the US, a new Mexican unicorn startup and a win for jaguar conservation.
train track

Maya Train gets final approval for a new freight terminal in Cancún

0
The green light from the Environment Ministry means land-clearing can begin on the new freight teminal, which will involve removing 260 hectares of jungle.

Threat of US immigration raids forces cancellation of Chicago’s Mexican Independence Day celebration

8
The Trump administration has threatened major anti-immigrant action in Chicago, the city with the third-largest Mexican and Mexican American population in the U.S.
BETA Version - Powered by Perplexity