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Sheinbaum tells Rubio to leave Mexico out of US midterms politics: Thursday’s mañanera recapped

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MND Staff
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President Sheinbaum at her Sept. 10 mañanera
President Sheinbaum used her Thursday press conference to fire back at U.S. Secretary of State Marco Rubio, characterizing his statements about cartel influence in Mexico as political posturing ahead of U.S. midterm elections. (Graciela López Herrera / Cuartoscuro.com)

Sheinbaum’s mañanera in 60 seconds

  • 💬Sheinbaum hits back at Rubio: Responding to the U.S. secretary of state’s claim that “vast territories” of Mexico are controlled by cartels rather than the government, Sheinbaum said Rubio’s remarks were electorally motivated ahead of November’s U.S. midterms. “They shouldn’t use Mexico in their campaign,” she said.
  • 🗳️ “Proposals, not insults”: As Mexico’s 2026-27 electoral process officially begins, Sheinbaum urged political parties and aspirants to comply with the law and focus on “proposals” rather than hurling insults at each other ahead of the June 6, 2027 elections, which will fill 500 federal deputy seats and 17 governorships.
  • 🕵️ FGR shares initial results on deputy’s death: Sheinbaum said the Federal Attorney General’s Office (FGR) has made some progress in its investigation into the death of Morena Deputy Zenyazen Escobar García, who was found dead with a gunshot wound last Friday, and will announce findings in due course. She offered condolences to his family and colleagues.

Why today’s mañanera matters

President Claudia Sheinbaum spoke about issues of international and national importance at her Thursday morning press conference, namely U.S. officials’ alleged use of Mexico for electoral gain, upcoming municipal, state and federal elections and the death of a federal lawmaker.

At today’s mañanera, Sheinbaum once again demonstrated her willingness to stand up to the United States government even as she seeks to maintain a relationship of respect with the Trump administration and resolve a range of bilateral tensions, including ones related to trade.

Sheinbaum responds to Rubio’s remarks on Mexican cartels 

A reporter asked the president about U.S. Secretary of State Marco Rubio’s comments about Mexico during his visit to Ecuador.

Speaking outside the U.S. Embassy in Quito on Wednesday, Rubio said “there are vast territories in Mexico that are not governed by the state,” but rather “controlled by narco-terrorist organizations” — i.e. drug cartels.

The secretary of state said that “the Mexicans have done more than they’ve ever done before to go after these groups, but it is still not nearly enough.” He also said that the United States’ “hope and intent” is to combat Mexican cartels “in partnership with Mexico.”

“That’s the ideal, but eventually that threat will have to be confronted one way or the other,” Rubio said, alluding to the possibility of the United States taking unilateral action against cartels in Mexico.

Rubio doubles down on claims that cartels control large areas of Mexico, hinting at unilateral US action

Sheinbaum said she believed Rubio’s remarks were electorally motivated.

“I think it’s part of the election campaign in the United States. They have an election in November,” she said, referring to the Nov. 3 midterms.

“As we’ve said, they shouldn’t use Mexico in their campaign. The United States has its [own] problems so Mexico shouldn’t be used as part of the election campaign in the United States,” Sheinbaum said.

“But I think that recently, they’re wanting to use Mexico again and that’s not right,” she said.

Sheinbaum has previously ruled out the possibility of the U.S. military taking action against cartels in Mexico. U.S. President Donald Trump said in January that the United States was going to start “hitting” cartels on land, but no confirmed direct attacks on Mexican criminal groups have occurred, although CNN reported in May that the CIA “facilitated” a “targeted assassination” of an alleged Sinaloa Cartel member in México state in March.

Sheinbaum urges electoral aspirants to focus on proposals, maintain civility

A reporter noted that the 2026-27 electoral process period starts today and asked the president “what message” she would like to convey to political parties and aspirants.

Sheinbaum said that parties and aspirants should “comply with the law” and not hurl “insults” at each other.

“There should be proposals,” she said.

“… If they do that, it will be a very good [electoral] process for the country,” Sheinbaum said. “That’s the message.”

Federal, state and municipal elections will be held in Mexico on June 6, 2027. At the federal level, voters will elect 500 deputies, while the governorships of 17 states will also be up for grabs.

Sheinbaum: FGR has ‘some results’ in investigation into death of federal deputy

People stand around a coffin at the funeral of Deputy Zenyazen Escobar García.
Family and friends attend the funeral of Deputy Zenyazen Escobar García. The federal legislator was found dead with a gunshot wound in his car on Friday. (Rolando Ramos / Cuartoscuro.com)

A reporter asked the president whether she had any information from the Federal Attorney General’s Office (FGR) about the death of Morena party federal Deputy Zenyazen Escobar García.

Escobar was found dead in his vehicle on the side of the Veracruz-Xalapa highway last Friday. The 42-year-old deputy, a Veracruz native who represented the 16th electoral district of that state, was found with a gunshot wound to his head and a gun between his legs. There has been media speculation that Escobar may have died by suicide, but the FGR, which assumed responsibility for the investigation, has not disclosed the cause of death.

Sheinbaum said that the FGR has “some results” in its investigation and will announce them in due course.

She subsequently conveyed her condolences to the family, friends and colleagues of Escobar, who was elected as a federal deputy in 2024.

By Mexico News Daily chief staff writer Peter Davies (peter.davies@mexiconewsdaily.com)

A grounded flight turns Sheinbaum-Lutnick USMCA meeting virtual, but still ‘very useful’

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MND Staff
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Sheinbaum, Lutnick
Details of the content of President Sheinbaum's video call with U.S. Commerce Secretary Howard Lutnick were not given, with Economy Minister Marcelo Ebrard, who attended the virtual meeting, going only so far as to say it was "cordial" and "very useful." (@howardlutnick/@claudiashein)

With U.S. Commerce Secretary Howard Lutnick unable to fly to Mexico City for a planned face-to-face with President Sheinbaum due to weather conditions, the two met virtually Wednesday to assess the progress of negotiations on the United States-Mexico-Canada free-trade agreement.

The call was reported to the media by Mexican Economy Minister Marcelo Ebrard, who attended the meeting with his boss and his U.S. counterpart and will be in Washington, D.C, Thursday to follow up. 

EBRARDM LUTNICK
Economy Minister Marcelo Ebrard has been the face of the Mexican side during the USMCA renewal negotiations. His ongoing shuttle diplomacy continues tomorrow (Thursday) as he’ll be in Washington meeting with U.S. officials, including Commerce Secretary Howard Lutnick (right). (Marcelo Ebrard)

“The exchange was cordial, and I believe it will be very useful for the ongoing commercial negotiations with the United States,” Ebrard wrote on the social media site X.

During her regular morning press conference, Sheinbaum said it is in the best interests of Mexico, the United States, and Canada to maintain the USMCA and emphasized that Mexico’s objective is for the three countries to remain in a trade agreement.

Sheinbaum stressed that Mexico’s objective in the negotiations is to reduce tariffs on steel, aluminum and the automotive sector. 

“Besides considering them unfair, they are harming our economy,” she said. “Therefore, we want these tariffs lowered, and we also don’t want new tariffs, because the United States has indicated that another round of tariffs is coming for many countries around the world related to what they call “overcapacity.” 

The ongoing talks include the 54 non-tariff issues raised by the United States, including intellectual property, piracy, and pharmaceuticals, most of which have been resolved, although some remain, according to Sheinbaum.  

The meeting follows recent talks between Lutnick and Ebrard on September 2, during a G-20 ministerial meeting in North Carolina, where they discussed the USMCA negotiations.

Ebrard said he will be flying to Washington on Thursday to continue negotiations prior to the fourth bilateral round to review the USMCA, which will take place this month. 

With reports from Grupo Animal and Cronica

A year in, Mexico’s newly constituted Supreme Court stresses autonomy, austerity and proximity to the people

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MND Staff
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Chief Justice
In presenting the Supreme Court's first annual report under its reconstituted structure, Chief Justice Hugo Aguilar highlighted the yearlong effort to bring the process of justice closer to the Meixcan people, especially the Indigenous and other marginalized communities. (Hugo Aguilar/Facebook)

On Sept. 1, 2025, Mexico inaugurated a newly constituted Supreme Court that emerged from the nation’s first-ever popular judicial elections. A year later, Chief Justice Hugo Aguilar Ortiz issued the new Court’s first annual report, in which he highlighted as its chief accomplishments austerity, proximity to the people, and autonomy balanced by collaboration between branches of government. 

“This year of work has served to dispel doubts: the Federal Judiciary is autonomous,” Aguilar said at the inauguration ceremony attended by President Claudia Sheinbaum and members of her cabinet. “It functions and works to deliver the results the people demand,” 

Sheinbaum at Supreme Court
The presentation of the year-old Supreme Court’s annual report was attended by President Claudia Sheinbaum and members of her cabinet.
(Hugo Aguilar/Facebook)

Aguilar stated that the Court is undergoing a transformation in how it administers justice, a theme reflected in the title of the inaugural event itself: “A Year of Real and True Justice: A New Way of Understanding and Administering Justice,” 

“Today, the people hold sway over the Judiciary,” he said. “We have left behind the era when rulings were handed down behind the public’s back and in the service of a select few interests.”

According to Aguilar, one of the justices’ primary objectives during their first year in office was to address the 1,479 pending cases inherited by the new Court, of which 97% were resolved. The figure, in addition to the new cases, totaled 15,051 cases discussed and 13,231 resolved throughout the year.

Another priority was to bring justice closer to sectors that have historically faced greater difficulties in accessing the judicial system. 

“Our priority has been to open the doors of this Court to Indigenous communities, women, and historically excluded sectors,” he said.

The Court’s autonomy was another major theme of his address. Aguilar stated that even though the Judiciary has remained independent from the other branches of government, this “does not imply distance.”  

Finally, Aguilar noted that the Court currently operates under a “policy of strict republican austerity, with zero luxuries, zero excessive budgets, and total transparency regarding every peso spent by the Supreme Court.”

But what do the former justices think? 

Retired Justice Javier Laynez Potisek questioned Aguilar’s assessment, noting that the newly constituted Court has handled fewer cases than its predecessor, and that the figures Aguilar cited do not necessarily reflect improved operations.

“Over a similar period, they heard 35% fewer cases than the previous Court,” Laynez told MVS Noticias, adding that amassing statistics may serve  to construct a favorable narrative regarding an institution’s performance, but it does not necessarily allow for an assessment of how it actually functions.

“This flood of figures tells us absolutely nothing,” Laynez said.  

Meanwhile, retired Justice María Emilia Molina questioned some of the decisions adopted during the Court’s first year, stating that in matters of importance to the government, the Court has ruled in favor of the State.

“What we have seen is a Supreme Court […] more concerned with defending the rights of the State than the rights of the people who inhabit this country,” she said. 

With reports from La Jornada, Eje Central and El Financiero

2 new suspects arrested in the January 23 mass abduction/murder of Sinaloa mine workers

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MND Staff
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two Vizsla Mine abdection suspects
A joint operation by the federal Defense and Security Ministries and Sinaloa state security officials resulted in the arrest of two alleged cartel members (shown here) in connection with the January 23 abduction and eventual murder of mine workers in the state of Sinaloa. (gob.mx)

Almost nine months after the January 23 kidnapping of 10 workers at the Vizsla Silver Corporation’s mine in the northwest state of Sinaloa — and the murder of at least nine of them — two suspects have been arrested in connection with the crime, both suspected members of the Los Chapitos faction of the Sinaloa Cartel, the Defense Ministry announced Tuesday.

The operation —  a coordinated effort of the Defense and Security Ministries and the Special Operations Group of the Sinaloa state Public Security Ministry —  took into custody Ángel Gabriel “N (a),” known as “Tronco,” and Milton Yair “N.” The detainees were found in possession of two rifles, a 40mm grenade launcher attachment, magazines and ammunition of various calibers, as well as drugs and tactical gear.

10 abducted miners in January
These photos of the 10 Vizsla mine workers circulated widely in the media soon after their abduction on January 23, prompting President Sheinbaum to order more than a thousand agents to conduct a search with air support — all to no avail as the bodies of nine of them were soon found and a tenth remained missing. (X)

They were turned over to the Attorney General’s Office in Culiacán, the capital of Sinaloa, for further processing.

The two were not the first suspects detained in the case. On June 2, the federal government’s Security Cabinet announced the arrest of an alleged Sinaloa Cartel figure who is said to be linked to the crime. He has been identified in media reports as Gabriel Nicolás Martínez Larios, and also known as “Gabito.” Considered the “regional boss ” of Los Chapitos, Gabito was detained in Rosario, a municipality in Sinaloa south of Mazatlán.  

The tragic occurrences in La Concordia, Sinaloa, were headline news in January, and for months afterward as the fate of the abductees was slowly revealed. According to initial statements from those initially held in the case, the 10 kidnapped miners had been mistaken for members of the Los Mayos criminal group, rivals of Los Chapitos. 

With reports from López-Dóriga Digital

Finance Ministry proposes 10.6-trillion-peso budget for 2027 with boosts to health, security and education

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MND Staff
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Finance Minister Edgar Amador presenting the proposed 2027 budget to Senate Leader Higinio Martínez Miranda
The 10.6-trillion-peso (US $628B) 2027 budget represents an increase of around 1% in real terms compared to 2026 expenditures. (Graciela López/Cuartoscuro)

The federal government has proposed a 2027 budget of just over 10.6 trillion pesos (US $627.8 billion), an increase of around 1% in real terms compared to the expenditure approved for this year.

Finance Minister Édgar Amador Zamora submitted the proposed 2027 economic package to Congress on Tuesday night. Congress — which is dominated by the ruling Morena party — will vote on the proposal later this year.

presentation of Mexico's 2027 budget among Senate leaders in September 2026
Raising tax revenue has been a priority of the Finance Ministry, yet the projected 2027 haul of 15.4% of GDP still trails the 2024 figure of 18.3% — and falls well short of the OECD average of 34.1%. (Graciela López/Cuartoscuro)

In a speech in the Chamber of Deputies on Tuesday night, Amador said that “public spending in 2027 will continue to be focused on improving the well-being of families and strengthening economic growth.”

He also said that “public resources must be at the service of the people and the development of the country.”

In addition to outlining the government’s proposed spending in 2027, the budget proposal includes various economic projections for this year and next.

Let’s take a look at the key numbers.

The Finance Ministry’s forecasts

  • Growth of 2%+ predicted in 2027: The Finance Ministry (SHCP) is officially forecasting growth of 1.5-2.5% in 2027. However, in a statement released on Tuesday, the ministry asserted that Mexico’s economy “will grow at least 2% in 2027 … supported by consumption dynamism, the strengthening of public and private investment and a greater contribution from the external sector in an environment of greater trade certainty and more favorable financial conditions.”
  • Weaker growth forecast in 2026: The SHCP downgraded its growth outlook for this year to 1-2% from a previous prediction of 1.8-2.8%.
  • Budget deficit expected to decline in 2027: The SHCP is forecasting that the budget deficit will decline to 3.9% of GDP in 2027 from an estimated 4.1% of GDP in 2026. The ministry noted that a deficit of 3.9% of GDP would represent a decrease of 1.8 percentage points compared to 2024, when the deficit reached a record high of 5.7% of GDP.
  • Public debt forecast to increase in 2027: The SHCP anticipates that Mexico’s public debt will increase to 55% of GDP at the end of next year, up from an estimated 54% of GDP at the close of 2026.
  • Tax revenue forecast to increase in 2027: The SHCP predicts that tax income will increase to 15.9% of GDP in 2027 “without creating new taxes.” The ministry predicts tax revenue will be equivalent to 15.4% of GDP in 2026. Combating tax evasion is a priority for the federal government. Amador said Tuesday that higher tax collection will be possible thanks to the “modernization” of Mexico’s tax “framework” and the “strengthening” of the tax authority SAT, including by equipping it with “new digital and technological tools.”
  • Inflation predicted to decline in 2027: The SHCP forecasts that Mexico’s annual headline inflation rate will be 3% at the end of 2027, down from 3.5% at the end of this year. The Bank of Mexico targets 3% inflation.
  • Oil prices forecast to fall in 2027: The SHCP anticipates that a barrel of Mexico’s crude export mix will sell for an average of US $61.80 in 2027, down from an estimated $78.40 per barrel this year.
  • Peso predicted to weaken in 2027: The SHCP forecasts that the USD:MXN exchange rate will be 17.8 at the end of 2026 and 18 at the end of 2027. On Tuesday, the peso closed at 16.91 to the dollar, according to the Bank of Mexico.

Proposed spending in 2027

Among the key expenditure items in the government’s 2027 budget proposal are:

  • 1.1 trillion pesos (US $65 billion) for Mexico’s health care sector, an increase of 10.9% compared to 2026. Amador said that resources will go toward “strengthening infrastructure and guaranteeing the supply of medicine.” The government intends to open thousands of new IMSS-Bienestar healthcare centers to support its universal healthcare initiative.
  • 1.3 trillion pesos (US $77 billion) for education, an increase of around 7% compared to 2026. Among the intended use of the resources is the construction of new schools.
  • Just over 1 trillion pesos (US $59 billion) for social and welfare programs. Over half of the allocation is earmarked for the payment of pensions to seniors. The remainder of the funds are slated to go to other social and welfare programs, including educational scholarship schemes and employment initiatives such as “Sowing Life” and “Youths Building the Future.” Some 43 million Mexicans are beneficiaries of government social and welfare programs.
  • 1.6 trillion pesos (US $95 billion) for interest and debt repayments. Thus, around 1 in every 7 pesos of government expenditure in 2027 is slated to go to the repayment of debt.
  • 331.4 billion pesos (US $20 billion) for the Security Ministry, the Defense Ministry and the Navy Ministry, an increase of 11.6% compared to 2026. Around 56% of that amount is slated to go to the Ministry of National Defense, which oversees the Mexican Army. The Security Ministry, Defense Ministry and Navy Ministry all play key roles in the implementation of the federal government’s national security strategy. The National Guard, another key security institute, is slated to receive 31.48 billion pesos in funding in 2027. Homicides have declined significantly during the term of the current government, but serious security challenges remain.
  • 150.8 billion pesos (US $9 billion) for passenger rail projects, including lines between Mexico City and Pachuca and Mexico City and Querétaro.
  • 81.1 billion pesos (US $4.8 billion) in financial support for state oil company Pemex, a reduction of 69.2% compared to 2026. Pemex, which has debt of around US $80 billion, said last year that it was aiming for financial self-sufficiency in 2027. All told, Pemex is slated to get some 527 billion pesos (US $31.2 billion) in funding next year, a reduction in real terms of 1.3%.

The SCHP also said that public and “mixed” (i.e., public-private) investment will total 5.7 trillion pesos (US $337 billion) between 2026 and 2030, the year President Claudia Sheinbaum’s six-year term will end. That investment, the ministry said, “will boost Mexico’s economic development.”

Amador said that public expenditure has a “double responsibility — build well-being today and raise the capacity to grow tomorrow.”

“This means continuing to strengthen effective access to rights such as healthcare, education and housing. It also means reducing inequalities that for decades limited the development of millions of people and regions of the country,” he said.

At Sheinbaum’s Wednesday morning press conference, the finance minister spoke about the budget proposal’s “five pillars,” namely economic growth; the protection of government priorities; the “strengthening” of government income; more efficient spending; and fiscal discipline.

Sheinbaum stressed that the government isn’t proposing any new taxes, but is aiming to crack down on tax evasion. She also said her administration was “optimistic” that economic growth in 2027 could exceed the Finance Ministry’s forecast.

The budget’s winners and losers 

The news outlet Expansión reported that the National Electoral Institute (INE) is slated to be the “biggest winner” in percentage terms, given that its budget is set to increase by 87.5% in real terms in 2027. The SHCP has earmarked 42.27 billion pesos in funding for the INE in 2027. The electoral institute will organize federal, state and municipal elections next year.

The next biggest budget winners, according to Expansión, are:

  • The Ministry of the Navy: Its allocation is slated to increase 19.4% in real terms to 81.22 billion pesos in 2027.
  • The Ministry of Agriculture and Rural Development: Its budget is set to increase 13.4% in real terms to 88.76 billion pesos next year.
  • The Mexican Social Security Institute: Its allocation is slated to increase 9.8% in real terms to 1.8 trillion pesos in 2027.
  • The Ministry of Science, Humanities, Technology and Innovation: Its budget is set to increase 9.5% in real terms to 42.21 billion pesos next year.

The biggest budget losers, according to Expansión, are:

  • The Energy Ministry: Its budget is slated to decline 69% in real terms to 85.63 billion pesos in 2027.
  • The National Human Rights Commission: Its allocation is set to decrease 12.1% in real terms to 1.65 billion pesos next year.
  • The Federal Electricity Commission: Its budget is slated to decline 8.5% in real terms to 523.75 billion pesos in 2027.
  • The President’s Office: The allocation to Sheinbaum’s office is set to decrease 3.1% in real terms to 800.5 million pesos next year.
  • The National Institute of Statistics and Geography: INEGI’s budget is slated to decrease 3.1% in real terms to 11.81 billion pesos.

With reports from El Economista, El Financiero, El Sol de México, Expansión, Reforma and Animal Político

El Jalapeño: Mexico thanks Trump for strengthening economy and currency, requests more threats

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El Jalapeno
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Mexico's economy is booming and its currency is stronger than ever. For this, the country's leaders owe a debt of gratitude to U.S. President Donald Trump. (This image was generated using AI tools)

All stories in El Jalapeño are satire and not real news. Check out the original article here.

MEXICO CITY — Senior officials at the Ministry of Economy and Banco de México issued a formal joint statement Tuesday expressing heartfelt gratitude to U.S. President Donald Trump, crediting his relentless rhetoric, tariff warnings and trade ultimatums with single-handedly accelerating the resilience of the Mexican economy and solidifying the super peso.

According to economic data released alongside the statement, every time Washington issues a new warning regarding trade restrictions, Mexican manufacturing corridors experience an immediate influx of nearshoring capital, while foreign exchange markets instinctively bid up the peso. Financial analysts noted that while standard macroeconomic theory suggests the peso should be trading closer to 37 to the U.S. dollar based on historic 25-year trends, repeated external political pressure has inadvertently forced the currency into an era of near-indestructibility, as evidenced by the currently robust rate of 16.89 pesos per dollar.

Nothing has spurred the economy and currency of Mexico as reliably as threats from Donald Trump. (U.S. Embassy for Mauritania)

“We want to formally express our appreciation for the constant pressure coming from across the border,” said Chief Economic Strategist Fernando Reyes at a press briefing in the capital. “Decades of conventional monetary policy failed to give our manufacturing sector this kind of momentum, but a few well-timed social media posts about sweeping trade penalties managed to drive record industrial investment into Nuevo León in a matter of weeks. Frankly, we’d like to ask if President Trump has any additional threats available for the third quarter.”

Ministry representatives noted that foreign direct investment models have had to be completely rewritten to account for the phenomenon. Under the newly adopted framework, a standard trade dispute warning now correlates to a 1.2% appreciation in the peso, while a direct threat to disrupt regional supply chains yields approximately US $3 billion in new industrial park construction across central Mexico.

“Our foreign exchange desks used to monitor interest rate differentials and Federal Reserve meetings,” said Patricia Morales, a senior currency analyst based in Mexico City. “Now, whenever a high-stakes trade warning is issued in Washington, we simply clear our schedules and prepare for another surge in logistics contracts. It has turned out to be the most reliable economic stimulus program in modern Latin American history.”

The central bank concluded its briefing by confirming that diplomatic channels remain wide open, with officials prepared to send a complimentary basket of local artisanal products to Washington in hopes of securing another round of aggressive trade declarations before the end of the fiscal year.

Check out our Jalapeño archive here.

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MND Local: Puerto Vallarta wants answers to municipal payroll allegations

By
Charlotte Smith
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Puerto Vallarta aerial photo
Why are 668 more people working for the municipality of Puerto Vallarta than were approved in the budget? Charlotte Smith investigates. (Emmanuel Appiah/Unsplash)

Last week, I wrote about Puerto Vallarta’s municipal payroll as part of my weekly roundup of local stories. It generated quite a bit of interest, and, more importantly, a lot of questions. So, I went looking for the answers.

The good news is that much of the information is sitting right there in the city’s own transparency records. The less good news is that once you start comparing those records with what the City Council actually approved, things get a little more complicated.

Coastline of Puerto Vallarta
Allegations of municipal corruption have been lodged in Puerto Vallarta and the city’s residents want answers. (Simea/Unsplash)

At the center of it all is Councilwoman Melissa Madero Plascencia, who says her review of municipal records has uncovered a significant difference between the number of positions the city was authorized to have and the number of people currently appearing on the payroll. Mayor Luis Munguía says the payroll isn’t inflated.

Both sides have made their positions clear, but this is one of those stories where the most useful thing we can do is step away from the political argument for a minute and look at the paperwork.

What was approved? Who’s actually being paid? How much is it costing? And perhaps most importantly, what are residents getting for all that money?

Comparing authorized positions with payroll records

This isn’t really about whether Puerto Vallarta needs a lot of municipal employees. Of course it does. A city of this size needs people collecting garbage, maintaining parks, fixing streetlights, responding to emergencies, processing permits and doing all the other largely invisible work that keeps a city functioning.

It’s about whether the people being paid are where they’re needed, whether the positions are properly authorized, and whether residents are seeing the benefit of the money being spent.

And when public money is involved, those seem like pretty reasonable questions.

What did the city actually approve?

The lessons on living a good life you learn in Mexico

When the city council approved Puerto Vallarta’s 2026 budget in December 2025, it also approved the city’s staffing list; essentially, the number of positions the municipality was authorized to have. That number was 2,707 positions, with an annual cost of about 758.5 million pesos.

Madero says her review of municipal records shows 3,375 active positions on the payroll. That’s 668 more positions than the council approved, representing an estimated additional cost of 151.95 million pesos a year, according to her analysis.

Those are significant figures, but they’re allegations that still need to be independently examined. The existence of additional positions, by itself, doesn’t prove that anything illegal has happened.

Examining the details of city records

What do the city’s own records show?

Puerto Vallarta publishes its payroll online, including employees’ names, positions, departments and pay. The most recent complete payroll currently available is for the second half of July 2026. It runs to 61 pages and provides a remarkably detailed look at who was being paid by the municipality at that point.

The city also publishes its approved 2026 staffing list, making it possible to compare what was authorized with what actually appears on the payroll. That comparison is where some of the questions begin.

Table detailing Puerto Vallarta's budget.
The number of positions and the approved budget don’t quite add up in Puerto Vallarta.

For example, the approved staffing list includes 18 positions under the mayor’s office. But the July payroll contains considerably more people across the broader areas associated with the mayor’s office.

Madero’s analysis counts 151 people across the mayor’s office, private secretary’s office, executive office and advisers, at an annual cost of about 52.15 million pesos.

There are differences in how some departments and positions are grouped in the various reports, however, which is why the actual payroll records matter. Before anyone can draw a firm conclusion, the categories need to be compared on an apples-to-apples basis.

Analyzing budget figures and departmental growth

How much is being spent?

Puerto Vallarta’s total 2026 spending budget is about 3.1 billion pesos. Roughly 1.4 billion pesos of that is budgeted for personnel costs, which is about 45% of the city’s total spending budget. That figure includes more than basic salaries, so it shouldn’t be treated as a straight payroll figure.

Madero has also identified 778 positions she says fall outside the approved structure, representing about 179.7 million pesos in annual costs. That number shouldn’t simply be added to the 668 additional positions mentioned earlier, as the categories overlap, meaning doing so could count some positions twice.

MND Local: 4 stories that reveal a changing Puerto Vallarta

She’s also raised concerns about the pace of payroll spending, saying an area of the budget set aside about 100 million pesos for eventual payroll spending could end up closer to 291 million pesos annually if the current rate continues. Those figures will need to be reconciled with the administration’s records.

What does the mayor say?

Munguía has rejected the suggestion that the municipal payroll is inflated. He said he welcomes the observations from council members, and that the city’s budget is dynamic and can be reviewed or redirected as necessary. He specifically pointed to garbage collection trucks, machinery, specialized equipment, pruning and streetlight maintenance as areas where resources could potentially be redirected.

Assessing public service impact and next steps

And that brings us to the question that may matter more to residents than any spreadsheet.

What are residents getting for the money?

Madero says some departments have actually seen staffing reductions while other areas have grown. She points to 179 fewer personnel in citizen security than the authorized staffing level, as well as reductions in parks and gardens and the municipal landfill. She’s also raised concerns about staffing and equipment in areas such as traffic signals and drainage.

Puerto Vallarta coastline
Regardless of how many people are employed, residents of Puerto Vallarta want to know whether they’re getting the services they deserve. (Jeffrey Eisen/Unsplash)

Those claims deserve scrutiny too, because ultimately, residents don’t experience a payroll spreadsheet. They experience the city.

Residents know when the garbage isn’t picked up. They know when the park down the street isn’t being maintained; they know when the water goes out, when a streetlight stays broken for weeks, when traffic signals aren’t working or when potholes seem to multiply faster than they can be repaired. If the city needs more employees, then residents should be able to see what those employees are doing and why they’re needed.

What’s being done … and what isn’t

Madero has said she plans to take her evidence to the municipal comptroller and, if necessary, to the state’s anti-corruption prosecutor. As of Sept. 8, I couldn’t find a public announcement that the municipal comptroller has opened a specific investigation into the payroll allegations. That doesn’t mean one isn’t underway; it simply means there’s been no public announcement that I could find.

For now, we have the approved staffing list, the city’s payroll records, Madero’s analysis and the mayor’s response. And perhaps that’s exactly where this story should stay for the moment. With the records, the questions and the people who ultimately pay the bill.

Charlotte Smith is a writer and journalist based in Mexico. Her work focuses on travel, politics and community. You can follow along with her travel stories at www.salsaandserendipity.com.

Sheinbaum optimistic about Mexico’s 2027 growth prospects: Wednesday’s mañanera recapped

By
MND Staff
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Sheinbaum Sept. 9, 2026
"We're optimistic about what will happen in 2027 and we're also very satisfied with the [proposed] economic package," the president said on Wednesday. (Saúl López Escorcia/Presidencia)

Sheinbaum’s mañanera in 60 seconds

  • 📊 2027 budget’s “five pillars”: Finance Minister Édgar Amador Zamora outlined the proposed 10.5-trillion-peso ($621-billion USD) 2027 budget’s five pillars, namely economic growth, protecting government priorities, strengthening revenue, more efficient spending and fiscal discipline. He highlighted that the budget deficit is projected to fall to 3.9% of GDP in 2027 from 4.1% this year.
  • 🚫 “No new taxes,” Sheinbaum insists: The president said the budget doesn’t include new taxes or fuel price hikes (gasolinazos), stressing the focus is instead on combating tax evasion by people who “should pay taxes, but don’t.”
  • 📈 Sheinbaum optimistic on growth: While the official 2027 economic growth forecast is 1.5%-2.5%, Sheinbaum said stronger growth is possible given pending public and public-private investment projects. She also cited anticipated “greater stability” in trade relations with the U.S. and Canada as a potential growth accelerator.

Why today’s mañanera matters

President Claudia Sheinbaum held her Wednesday morning press conference a day after Finance Minister Édgar Amador Zamora submitted the government’s 2027 budget proposal to federal Congress. The draft “economic package” proposes public spending of some 10.5 trillion pesos (US $621 billion) next year.

The mañanera was significant as Amador spoke about the budget proposal’s “five pillars.” In doing so, he outlined where the government’s priorities lie.

Finance Minister Edgar Amador
Minister Amador said there will be greater “efficiency” in tax collection, but stressed that taxes won’t go up in 2027. (Saúl López Escorcia/Presidencia)

For her part, Sheinbaum stressed that the government isn’t proposing any new taxes, but is aiming to combat tax evasion. She also said that her administration is optimistic about Mexico’s economic growth potential, in part because it anticipates “greater stability” in the trade relationship with the United States.

On July 1, the U.S. government announced that it had declined to renew the USMCA free trade pact in “its current form”, but U.S. officials continue to engage with their Mexican counterparts on trade issues. Sheinbaum and Economy Minister Marcelo Ebrard are scheduled to speak with U.S. Commerce Secretary Howard Lutnick in a video call on Wednesday.

One of Mexico’s central aims in its bilateral trade talks with the United States is to secure a reduction in U.S. tariffs on Mexican vehicles, steel and aluminum.

The 5 pillars of the federal government’s proposed 2027 budget 

Amador told reporters that the 2027 budget proposal has “five pillars.”

They are:

  • Economic growth.
  • The protection of government priorities.
  • The “strengthening” of government income.
  • More efficient spending.
  • Fiscal discipline.

Amador said the proposed 2027 economic package “protects the well-being of families, promotes development and maintains a trajectory of healthy public finances through these five pillars.”

He said the government is targeting economic growth above 2%, but noted that the forecast for next year is an economic expansion in the range of 1.5%-2.5%.

Amador said that the draft budget protects government priorities, including welfare programs and “public investment.”

The finance minister pledged that the government will “strengthen” its revenue, including by combating tax evasion. He said there will be greater “efficiency” in tax collection, but stressed that taxes won’t go up.

Amador also said that the government is committed to “more efficient spending.”

“Republican austerity measures are moving forward,” he said.

Regarding fiscal discipline, Amador said there will be a “gradual” and “responsible” reduction of the public sector deficit. The deficit is projected to fall to 3.9% of GDP in 2027 from 4.1% of GDP this year.

OECD cuts Mexico’s 2026 growth forecast but sees a brighter 2027

Sheinbaum: ‘There are no new taxes, that’s the first thing’

Sheinbaum stressed that the government didn’t propose any new taxes in its budget proposal.

“There are no new taxes, that’s the first thing,” she said.

“There are not going to be new taxes. Nor are there going to be gasolinazos,” Sheinbaum said, using a colloquial word for steep hikes to fuel prices.

What is set out in the proposed budget, she said, are “measures” to combat tax evasion.

“Tax evasion still exists,” Sheinbaum said. “What does that mean? [There are] people who should pay taxes, but don’t.”

Sheinbaum subsequently told reporters that the budget proposal maintains “all the incentives for new investment,” including those offered in the context of Plan Mexico, the government’s ambitious economic initiative.

Sheinbaum expresses optimism about Mexico’s potential for economic growth 

Sheinbaum noted that the Finance Ministry is forecasting growth in the range of 1.5%-2.5% in 2027.

“Let’s see if we grow more,” she said.

Sheinbaum said that higher-than-anticipated growth next year is “possible” because the economic impact of “a lot” of proposed public and public-private investment projects will be felt next year.

“Our idea is that [the economy] could grow more,” she said.

Sheinbaum also said that her government anticipates “greater stability” and “greater certainty” in the trade relationship between Mexico and its USMCA partners, namely the United States and Canada.

She said that the government also anticipates an increase in private investment next year.

“We’re going to wait and see how 2027 turns out and then we’ll make an assessment for 2028,” Sheinbaum said.

“We’re optimistic about what will happen in 2027 and we’re also very satisfied with the [proposed] economic package,” she said.

By Mexico News Daily chief staff writer Peter Davies (peter.davies@mexiconewsdaily.com)

The MND Peso Index™ for September: MXN is nearly 6% overvalued against USD

By
MND Intelligence
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8
Our headline finding for September 2026 indicates that the peso is overvalued against the dollar by 5.8%, an increase of 3.4 percentage points compared to the 2.4% overvaluation we determined in early August.
Our headline finding for September 2026 indicates that the peso is overvalued against the dollar by 5.8%, an increase of 3.4 percentage points compared to the 2.4% overvaluation we determined in early August. (Mexico News Daily)

THE MND PESO INDEX™

Tracking the exchange rate people actually experience

MND Intelligence · Fifth edition

Welcome to the fifth edition of the MND Peso Index™, part of the MND Intelligence™ suite of data products developed by Mexico News Daily.

The MND Peso Index™ is a monthly purchasing power parity measure that assesses whether the Mexican peso is overvalued or undervalued against the US dollar by comparing the prices of a standardized basket of 20 goods and services in Mexico and Dallas, Texas.

As was the case with our previous edition, our latest MND Peso Index™ assessment is being published in the same month as its underlying price survey, making it more timely.

Our headline finding for September 2026 indicates that the peso was overvalued against the dollar by 5.8%, an increase of 3.4 percentage points compared to the 2.4% overvaluation we determined in early August. This is the highest overvaluation assessment the MND Peso Index™ has yielded, surpassing the 4% overvaluation appraisal in May.

For a detailed explanation of the purpose of the MND Peso Index™, the makeup of the basket and more, please refer to the index article we published in June. You can read even more about the index in our introductory article published in early May.

What did the MND Peso Index™ tell us in September 2026?

In September 2026, the MND Peso Index™ suggests that the USD:MXN exchange rate on the date we collected prices in various Mexican cities and in Dallas, Texas, overvalued the Mexican peso by 5.8%.

The Mexican and Dallas prices were collected on Sept. 2, 2026. The MND Peso Rate — the simple average of the 20 item-level implied exchange rates, rather than the rate produced by dividing the total Mexican basket cost by the total Dallas basket cost — came in at 17.96 pesos per dollar, compared with a Banxico FIX rate of 16.98 pesos per dollar on Sept. 2.

(Mexico News Daily)

The gap between those two figures indicates that the peso — at a rate of 16.98 to the US dollar — was overvalued by 5.8% in early September.

In the table below, you can see the Mexico and U.S. prices for all 20 goods and services in the basket, the total costs of the two baskets, the implied exchange rate for each item, the MND Peso Rate (i.e., the overall implied rate), the Banxico FIX rate on the date prices were collected and the overvaluation assessment for the peso.

Why did the peso’s ‘overvalued’ assessment increase between August and September? 

The peso’s overvaluation assessment increased from 2.4% in early August to 5.8% in early September because the gap between the Banxico FIX rate and the MND Peso Rate widened.

The widening occurred due to the appreciation of the peso between Aug. 6 and September 2 and due to an increase in the MND Peso Rate. The peso appreciated 24 centavos from 17.22 to 16.98 over that period, a strengthening of 1.4%. The MND Peso Rate increased 32 centavos from 17.64 on Aug. 6 to 17.96 on Sept. 2. The difference between the Banxico FIX rate and MND Peso Rate on Sept. 2 was 98 centavos, an increase of 56 centavos compared to the gap between the two rates on Aug. 6.

The peso has recently appreciated due to a range of factors, including US dollar weakness and carry trade demand for Mexico’s currency. The MND Peso rate increased due to eight month-over-month changes in the implied rates for items in the basket of goods and services.

The implied rates increased for six items: A Big Mac, a Big Mac meal, a dozen eggs, Kirkland toilet paper, Listerine mouthwash and a Planet Fitness membership. In the case of the Big Mac and the Big Mac meal, the implied rate rose because prices in Dallas fell. In the case of the eggs, toilet paper and mouthwash, the implied rate increased because prices in Mexico rose. The price of a Planet Fitness membership declined in both Dallas and Mexico. However, the Dallas price fell more than the Mexico price, causing the implied rate to increase.

The implied rate for a cinema ticket declined because the price fell on both sides of the border, but the decrease in Mexico was larger. The eighth month-over-month implied rate change was due to the replacement of a Flexon Hose — which is no longer available on Costco México’s website — with a set of glass containers. The implied rate for the set of glass containers was 21.64, while the implied rate for the hose last month was 24.26.

Overall, the combined upward effect of the six higher implied rates outweighed the downward effect of the two lower rates. Thus the MND Peso Rate increased between early August and and early September.

The MND Peso Index™ has now found the peso to be overvalued in April, May, June, August and September 

Through the use of the MND Peso Index™, we have now determined that the peso was overvalued against the US dollar by 2.8% in late April, 4% in late May, 2.9% in late June, 2.4% in early August and 5.8% in early September.

The difference between the lowest overvaluation assessment (that in August) and the highest one (this one) is 3.4 percentage points.

(Mexico News Daily)

So far in 2026, the peso has appreciated 6.4% against the US dollar. It closed at 18.00 to the greenback on the final day of 2025, according to the Bank of Mexico, while the closing USD:MXN rate on Tuesday, Sept. 8 was 16.91. If the Banxico FIX rate was 16.91 when we collected the prices for the Mexican and Dallas baskets on Sept. 2, the overvaluation assessment for the peso would have been 6.2%. 

* Price sources: Mexico prices were collected from the websites and apps of Walmart México, Costco México, AutoZone México, Telmex, Cinépolis, Petco México, McDonald’s, Starbucks, Netflix, Spotify and Microsoft. Dallas prices were collected from their U.S. equivalents. The Banxico FIX rate of 16.98 published on Sept. 2, 2026, was used as the official exchange rate reference.

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