Mexico City. During the current six-year term, continuity will be given to the “significant advances in poverty reduction” that occurred in the government of Andrés Manuel López Obrador, through existing social programs and newly created ones, but with a austerity approach in spending and the fight against corruption, said President Claudia Sheinbaum Pardo.
In the letter she sent this Friday to the Chamber of Deputies to present the Federation’s Expenditure Budget Project for Fiscal Year 2025, the federal president assured that, although “moderate” growth is expected worldwide next year , Mexico will have “positive growth” due to the strengthening of the internal market and the recovery of public and private investment.
The 12-page document emphasizes that in this government “we will continue the significant progress in reducing poverty and inequality achieved in the last administration, with the materialization of priority programs and projects for the benefit of the most disadvantaged population,” as established in the document 100 commitments for the 2nd floor of the Transformation.
After stating that the task of closing inequality gaps must be carried out by promoting economic development with social justice and care for the environment, Sheinbaum highlighted that “a fundamental premise is to banish neoliberalism, nepotism and corruption from public life.” , since these faults “have undermined the people’s confidence in their institutions and diverted resources” from citizens.
Therefore, “to strengthen honesty in the public service, the fight against corruption, surveillance and punishment of improper acts will be intensified,” and “a transparent and efficient public procurement and contracting policy will be applied, to maximize the use of resources.” available resources, allowing them to be allocated to priority social programs.”
The spending policy for 2025, said the president, “was formulated with full responsibility, maintaining healthy public finances, in observance of budget balance and fiscal discipline.”
In this framework, he pointed out that, although “the global economic context for 2025 anticipates moderate growth, with pressures derived from adjustments in energy markets and possible changes in international investment flows, in Mexico, the strengthening of the domestic market and the recovery of public and private investment project positive growth.”
The above will be “supported by a stable fiscal balance and control of public debt,” which “ensures solid macroeconomic support that will allow the implementation of policies and projects aimed at boosting domestic consumption and promoting job creation, thus strengthening the economic stability of the country.”
Sheinbaum admitted that in 2025 “important challenges are expected for the Mexican economy, such as the stabilization of energy prices and inflationary pressure caused by external factors, including climate events and geopolitical tensions, which could impact the price of basic goods and national consumption.”
Given this, the budget will focus on “consolidating strategic investments in infrastructure and well-being, promoting economic resilience and productive reactivation to reduce regional inequalities and strengthen the labor market.”
Breakdown of expenses on social programs
The president explained that the Federation Expenditure Budget Project proposes a total net expenditure of 9 billion 302 thousand 015.8 million pesos (mdp), “which represents an increase of 2.6 percent, compared to Fiscal Year 2024. Of this amount, 6 billion 527 thousand 631.3 million will be allocated to programmable spending, which is equivalent to 70.2 percent of the total net spending, while 2 billion 774 thousand 384.5 million will be allocated to non-programmable spending.”
According to the president, “we will focus important efforts on the well-being of the population from a human rights perspective, with special emphasis on vulnerable groups, early childhood, young people, older adults, people with disabilities, indigenous and Afro-Mexican peoples and communities, as well as small agricultural producers. Likewise, the set of social programs seeks to contribute to reducing inequalities between men and women.”
In her letter to the Chamber of Deputies, the president detailed that next year the Pension Program for the Wellbeing of Older Adults will have an allocation of 483 thousand 427.6 million pesos, and the Pension Program for the Wellbeing of People with Disabilities Permanent will have 28 thousand 961.4 million pesos.
Meanwhile, the Support Program for the Well-being of Girls and Boys, Children of Working Mothers, will have funds of 3,185 million pesos, and the new program of monetary support for women between 60 and 64 years old will have 15 thousand million pesos.
In the first stage of this scheme, “priority will be given to women from indigenous and Afro-Mexican peoples and communities. As the program progresses, it will be extended to cover all older women in the country.”
Regarding the Benito Juárez Welfare Scholarship program, 53,085.9 million pesos will be allocated for high school and higher education scholarships, and 1,871.9 million pesos will be allocated to “strengthen” the Benito Juárez García Universities for Wellbeing.
The “School is Ours” program will be granted 25 thousand million pesos and the new “Rita Cetina” Universal Basic Education Scholarship Program – intended for basic education students, but which will begin in this government with secondary school students – will be granted They will give 78 thousand 840.7 million pesos.
In 2025, the “Young People Building the Future” program will have 24,205 million pesos, and 165,562.6 million pesos will be allocated for the “consolidation” of the IMSS-Wellbeing scheme. The new “Salud Casa por Casa” program will be given 2 billion pesos.
For the National Housing Program for Wellbeing, 32 billion pesos will be granted in 2025. This scheme has a six-year goal of building one million homes and generating one million jobs in the process. In addition, it is planned to implement a massive writing program, with a goal of one million of these records throughout the country.
Commitments in agriculture, security and transportation
On the other hand, Sheinbaum pointed out that through the “Harvesting Sovereignty” program, small and medium-sized rural producers will be supported, providing improved seeds, credit with low interest rates, machinery and technical support, “in order to increase agricultural production, especially basic products such as beans, corn, onion, tomato, chili, wheat, sorghum, rice, cocoa, coffee and milk.”
In terms of security, “we will attack violence from its causes, betting on a strategy based on prevention, intelligence and coordination, with the firm commitment to guarantee peace and security.” For this reason, the creation of the National Intelligence System “represents a fundamental step to modernize our capabilities for analysis, prevention and combating crime.”
Regarding infrastructure projects, he reiterated that railway projects will be promoted towards the north of the country, “among them the new lines Felipe Ángeles International Airport-Pachuca, México-Querétaro, Saltillo-Nuevo Laredo and Querétaro-Irapuato,” with an investment of more than 90 thousand 166.3 million pesos.”
Also, “road infrastructure and maintenance, water and sanitation, and citizen safety projects will be developed, with a total investment of 63,931.4 million pesos in fiscal year 2025,” and the Mexico-Toluca Interurban Train, the Mayan Train and the Interoceanic Train.
For the participation of state and municipal governments, next year 2 billion 633 thousand 281.4 million pesos will be allocated to federalized spending, “which represents an increase of 3 percent, compared to Fiscal Year 2024.”
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#Continuity #significant #progress #poverty #reduction
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How do you foresee the proposed investments in social programs, like education and housing, influencing Mexico’s long-term economic stability and growth trends?
1. How do you assess the significance of poverty reduction initiatives in Mexico’s 2025 budget proposal? What are some of the specific programs and spending initiatives aimed at reducing poverty, and how do they build upon previous efforts?
2. In your opinion, what are the main challenges that Mexico’s economy is expected to face in 2025, and how do you think these will impact the budget? How does the budget address these challenges, and what steps have been taken to mitigate potential negative consequences?
3. The budget proposes a significant increase in spending on social programs, including education and housing. In your view, how effective do you think these initiatives will be in achieving their stated goals of improving the well-being of vulnerable populations and promoting economic growth? Are there any particular programs or initiatives you believe should be given more attention or resources?
4. The budget also prioritizes investment in infrastructure, with several major railway projects planned for the coming years. How do you think these investments will impact the country’s economic competitiveness and connectivity, particularly in light of global supply chain disruptions caused by the pandemic? Are there any additional transportation-related investments you would like to see in the budget?