Federal public spending compromised for 2022 in Mexico

Abstract

In Mexico, the public budget is one of the economic policies with the greatest impact on national economic development and the redistribution of national income.  Non-programmable public spending is considered to be that which cannot be modified, since it is regulated by law, as is the case of the participations delivered to federal entities and municipalities; the financial cost of public debt, debts from previous years and support to bank debtors. The concept of compromised public budget is that which is considered as non-programmable expenditure plus the items of federal contributions and the resources destined to pensions, both contributory (IMSS, ISSSTE) and non-contributory (senior citizens). I affirm that these are compromised resources in view of the fact that they are established in some legal norm and are mandatory programs. In my perspective, the Cámara de Diputados –House of Representatives- has no major interference in redistribution of the concepts that I have considered as compromised public budget, which represented 52.8% of the total public expenditure exercised in 2019 and 51.6% in 2020, related to the GDP mean 12.67% and 13.41 respectively. The resources of the compromised public budget could only decrease by approving amendments to the current legislation. In this way, the deputies' redistribution capacity covers 48.4% of the total federal expenditure budget in 2021. The potential amount of tax evasion and avoidance is considered to represent 3% of our country's GDP in 2020.