The clock is ticking on Mexico’s 2025 budget as Mexico’s Chamber of Deputies scrambles to rework the spending portion of the 9.3 trillion-peso (US $461.08 billion) budget submitted by President Claudia Sheinbaum before a final vote is expected on Thursday.
By Tuesday afternoon, deputies with Morena — the ruling party in the Chamber — had reportedly hammered out a proposal to reassign 40 billion pesos (US $1.98 billion) of the budget, with the National Electoral Institute and the judiciary suffering the biggest reductions.
The Budget Committee was poised to debate the resolution later Tuesday. Floor debate would then be scheduled for Wednesday, with a final vote set for Thursday.
Mexico’s budget challenges are significant, especially as Sheinbaum’s declared goal is to lower the nation’s deficit by increasing revenues and reducing expenditures. Mexico’s budget deficit is expected to close the year at negative 5.9%, according to the news agency Reuters.
Sheinbaum’s proposed spending cuts deprioritized sectors such as Mexico’s defense, with a 44% cut compared to the last budget, and security, which saw a 36% cut, Reuters reported. Environmental spending was also down 39% in the proposed budget, and educational institutions saw a 14% reduction.
Opposition to the budget was quick to arise after it was revealed on Nov. 15 — especially regarding cuts to public universities and cultural institutions — and some circumstances changed.
Among those changes was the elimination of seven autonomous Mexican agencies at the end of November, which freed up 4.4 billion pesos (US $218.2 million). Sheinbaum let Congress know she was willing to negotiate while insisting that some institutions must accept austerity.
Morena Deputy Ricardo Monreal, the leader of the ruling party’s caucus, told reporters Monday that the Chamber would be in session Tuesday and Wednesday to work on the proposed changes, with committees and caucuses hastening to crunch numbers amenable to Sheinbaum and the Finance Ministry.
Initially, the Chamber announced it would work to redistribute 20 billion pesos of the budget to favor universities and cultural institutions shortchanged in the initial budget (the Finance Ministry admitted to a clerical error that inadvertently reduced funds for two major public universities).
On Monday, Monreal announced that Morena had identified 30 billion pesos that could be reapportioned and that his caucus would present the proposals to the opposition and in committee, according to the newspaper El Universal.
Monreal specifically identified the INE and the Federal Electoral Tribunal (TEPJF) as targets for reduction, as well as Mexico’s judiciary.
At the same time, Sheinbaum made it clear that she wanted the Defense Ministry budget increased, prompting Monreal to urge Morena deputies to allocate more money to fund military pay raises, as well as road infrastructure, particularly in Mexico’s rural areas.
On Tuesday morning, a proposal had taken shape. The newspaper El Financiero reported that the resolution circulating in the Chamber of Deputies called for slashing 14 billion pesos from the judiciary and 13 billion pesos from the INE.
The Chamber also proposed reducing Congress’ budget while also reassigning funds from the executive branch, several cabinet ministries and a few regulatory agencies.
The changes proposed would increase the defense budget by 6.3 billion pesos, set aside an additional 10 billion pesos for roads and infrastructure and restore the cuts in funding to universities, including the National Autonomous University (UNAM), whose funding will be restored by 5.5 billion pesos (US $272.7 million), which comes to about 127 million pesos (US $6.3 million) more than UNAM had in 2024.
Overall, if the reworked budget were to be approved, educational institutions would in total be granted 17.3 billion more pesos than had been assigned in the original budget.
With reports from Infobae, El Financiero, Expansión Política and Animal Político
So, besides UNAM, who gets the money that’s cut from education, healthcare, defense, security, the judiciary, INE, etc? Cui bono?
Some of this money needs to be spent on the rapidly deteriorating Federal road system. Apparently Morena cut the road budget by 40 percent. This is exactly the opposite of what the anemic Mexican economy needs.
That is what happens when you have a stupid “lying” president like Obrador. building his “pet projects” (Mayen Train) who will drain extra money from the Treasury to keep it running. Now the government is broke, the economy is struggling and Sheinbaum is waiting to see how she is going to handle the new “tariffs “that are going to be implemented on January 20, 2025. The credit rating of Mexico is being lowered to begin the new year. Nothing good to report but confusion and more “lies” to report to the citizens. Wake up and don’t believe all that Sheinbaum is reporting at her morning news meetings. The Mexican people and the poor will feel the effect of this “stupidity” caused by “stupid” and very “dumb” past politicians (Obrador) who have ruined the country and the economy. Poverty continues to increase while the ” Mayen Train” keeps running and losing revenue.