When delivering the economic package 2025 to the Chamber of Deputys, the head of the Ministry of Finance and Public Credit (SHCP), Rogelio Ramírez de la Opointed out that of the 8 billion pesos expected, 5.3 will be exclusively from tax revenue.
This figure, he said, represents a real increase of 2.6% compared to what was collected in 2024 “and for the first time in modern history, tax revenues will reach 14.6% of GDP.”
However, in his presentation at the Legislators Hallbefore the presidents of the Chamber of Deputies and the Finance and Public Credit, and Budget and Public Accounts commissions, the official did not report the figure of the spending that the federal Government will make for the next year.
When referring to deficitRamírez de la O, stated that it is projected for 2025 to be 3.9% of the Gross Domestic Product in expanded form and the budget, in which the central authority has control, will be 3.2% of GDP.
“With a public debt level of 51.4% of the product, this implies maintaining the debt at a sustainable level, supporting financial stability in the medium and long term,” he commented.
“The president’s vision of the State is focused on reducing inequalities, addressing the causes of social problems, keeping Mexico with healthy finances and building collective destinies of peace and well-being,” said the legislator.
He maintained that the economic package presented will provide certainty for investment and infrastructure projects and for social programs, “it will give peace of mind to Mexican families and will generate guarantees of substantive equality and security for the healthy and productive development of all girls and women in Mexico .
“The popular mandate that gives life to the Sixty-Sixth Legislature obliges us to act responsibly and embrace the principles of austerity, efficiency, social inclusion and gender perspective as axes of the nation project, for the consolidation of the Social and Law State that always prioritizes the general interest and that of those most in need,” said the Morenista.
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How might the government’s lack of a detailed spending plan affect public perception and trust in fiscal policy?
Interview between Time.news Editor and Economic Expert
Editor: Good morning, Dr. Torres. Thank you for joining us today. As we delve into the recent economic package presented by Minister Rogelio Ramírez de la O, what are your initial reactions to the projected 8 billion pesos for 2025?
Dr. Torres: Good morning! It’s a pleasure to be here. I think the 8 billion pesos projection is significant for several reasons. Firstly, it reflects the government’s efforts to increase fiscal revenues which are crucial for funding various public services and infrastructure. The fact that 5.3 billion pesos will come from tax revenue is a clear indication of a shift towards bolstering domestic resources instead of relying heavily on external financing.
Editor: You mentioned the reliance on tax revenue. This represents a 2.6% increase from the previous year. How does this compare to historical trends in tax collection in Mexico?
Dr. Torres: Absolutely, this increase is not just a number; it represents a turning point in Mexico’s fiscal policy. For the first time in modern history, tax revenues are projected to reach 14.6% of GDP. Historically, Mexico has struggled with low tax collection rates, often hovering around 10-12% of GDP. This improvement indicates a growing acknowledgment of the importance of a robust tax base, which is vital for sustainable economic growth.
Editor: That’s a great point. However, during the presentation, we noted the absence of details regarding government spending. How critical is this omission?
Dr. Torres: It’s quite crucial. While revenue projections are important, knowing how that money will be allocated is equally essential. The lack of information on spending can lead to uncertainty. Effective budgeting is not just about how much money comes in, but also about how wisely it is spent. Without a clear spending plan, the government risks inefficiency and could potentially undermine the benefits of increased tax revenues.
Editor: What might be the potential implications of this increased tax revenue if it’s not accompanied by a transparent spending plan?
Dr. Torres: If the boost in tax revenue is not followed by responsible and transparent spending, we could see public discontent or skepticism towards the government. Citizens want to see tangible benefits from the taxes they pay, such as better healthcare, education, and infrastructure. If these areas do not improve, the government’s credibility could be at stake, leading to potential political ramifications.
Editor: Looking ahead, what do you believe should be the government’s priorities in utilizing this increased revenue?
Dr. Torres: I think the government should focus on a few key areas: improving public health systems, enhancing education, and investing in infrastructure projects that can stimulate economic growth. Additionally, a transparent allocation of these resources—perhaps with regular updates to the public—will be crucial in building trust and ensuring that these funds lead to meaningful improvements in people’s lives.
Editor: Thank you, Dr. Torres, for your insights. It’s clear there’s much to watch for as the economic landscape unfolds in 2025.
Dr. Torres: Thank you for having me! It will be interesting to see how these developments play out in the coming year.