Mexico’s total government debt amounted to 45.7% of gross domestic product (GDP). in the first nine months of 2023, lower than the 46.5% share observed in the same period last year, the Ministry of Finance and Public Credit (SHCP) reported this Monday.
In the Reports on the Economic Situation, Government Finances and Public Debt as of the Third Quarter of 2023, the public sector recorded a total net debt of almost 14.61 billion pesos. during the period January-September.
This is an increase of 8%. compared to the nearly P13.5 billion that the Treasury reported in September 2022.
Despite year-on-year growth, the SCHP showed that the debt-to-GDP ratio fell in June last year compared to December 2022. when it was 47.6%.
Still there was growth in absolute terms compared to the end of last year, when net debt was almost 14.03 billion pesos
The Ministry of Finance stated that public debt will continue its stable trajectory until the end of the yearas “the result of responsible fiscal policy.”
Budget revenues are improving
During this period the income amounted to 5.2 billion pesos.
This happened, the agency explained, because Increase in income tax collection (ISR) by 3.7%, adding four years of consecutive increases, and highlighted that while value added tax (VAT) benefited consumption, the appreciation of the peso against the dollar had a negative effect, causing a 4.7% year-on-year decline.
You might be interested > AMLO rules on tax breaks for Otis victims in Guerrero
The decline in oil revenues was due to lower oil price compared to what was observed in the same period in 2022, and the appreciation of the peso against the dollar to just over one trillion pesos, according to federal government estimates.
The Ministry of Finance emphasized that the results are due “towards sustainable economic performance, reflected in high employment levels, higher wages and favorable business profits.”
On the other hand, net budget expenditures increased by 5.1% compared to the period January-September 2022. up to 5.3 billion pesos.
The figures will be published before they are known on Tuesday 31 October. timely estimate of GDP in the third quarter, following growth of 3.6% year-on-year and 0.8% quarter-on-quarter in the first half of 2023.
In the third quarter of the year good performance on key macroeconomic indicators, which assumes the country’s growth will be in line with the estimate published in the Common Policy Framework to 2024, the Treasury said.
(according to information from EFE)
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
