During the first seven months of the year, public-sector spending amounted to 5.742 trillion pesos, representing a 3.5 percent increase in real terms compared with the same period in 2025, the Secretariat of Finance and Public Credit (SHCP) reported Friday.
According to the January-July 2026 public finance reports, federal expenditures were 438.703 billion pesos below the 6.181 trillion pesos approved in this year’s budget.
“At the end of July, the main fiscal balances recorded better results than those anticipated in the program, in line with the annual targets approved by Congress and with the gradual reduction of the budget deficit,” the Finance Ministry emphasized.
The agency highlighted that social development spending grew 9.2 percent in real annual terms, a rate higher than the 2.6 percent average recorded over the previous decade. In this regard, it noted that real increases were 15.1 percent in healthcare, 8.4 percent in education, and 7.9 percent in social protection.
The SHCP indicated that this was a “reflection of greater coverage of the Welfare Programs, aimed at guaranteeing the rights and well-being of the population.”
The Finance Ministry said budget revenues grew for the third consecutive year, driven by the performance of value-added tax (VAT) collection, the Special Tax on Production and Services (IEPS) excluding fuels, and import taxes, as well as higher oil revenues.
Between January and July, federal revenues totaled 4.996 trillion pesos, representing a 0.9 percent increase in real terms, meaning after accounting for inflation.
Income tax collection amounted to 1.777 trillion pesos, representing a 6.0 percent decline compared with January-July 2025. VAT revenues totaled 1.041 trillion pesos, translating into a 9.9 percent real annual increase, while IEPS revenues amounted to 401 billion pesos, representing a 2.0 percent real increase compared with the first seven months of 2025.
Oil revenues amounted to 608.564 billion pesos, representing a 10.7 percent real increase compared with the first seven months of 2025.
Net federal government debt represented 48.3 percent of gross domestic product (GDP). This debt consists mainly of instruments denominated in Mexican pesos, at fixed rates and with long-term maturities, which minimizes the risks associated with exchange-rate fluctuations and the need to refinance debt.
The historical balance of the public-sector financial requirements (SHRFSP), known as the broad debt measure, stood at 51.5 percent of GDP. The Finance Ministry emphasized that this represents a “moderate level compared with other emerging economies and Latin America, consistent with responsible fiscal management and prudent debt management.”
From January to July, the financial cost decreased 4.9 percent in real annual terms, leaving it 115 billion pesos below the programmed amount. The Finance Ministry explained that this was due to the appreciation of the peso and a liability-management strategy aimed at optimizing maturities and maintaining favorable financing conditions.
Source: jornada
