Treasury reports deficit of 897 thousand million pesos until August

Mexico City. In the first eight months of 2024, the public sector observed a deficit of 897 billion pesos, because the federation spent 5 trillion 947 billion pesos and only obtained income of 5 trillion 049 billion pesos, revealed data revealed this Friday by the Ministry of Finance and Public Credit (SHCP).

According to the public finance report corresponding to the eighth month of the year, the budget deficit was lower compared to the 981 billion pesos that were approved by the Congress of the Union in the economic package for 2024.

“At the end of August, public finances remained healthy, recording fiscal balances in line with established goals and a sustainable debt level,” said the Treasury.

The federation obtained income of 5 trillion 049 billion pesos so far this year, an amount that translated into an increase of 3.6 percent in real terms, that is, discounting the effects of inflation compared to the same period in 2023. thus exceeding the average of 2.3 percent observed in the last 10 years.

In addition, the figure was higher by 75,715 compared to what was estimated in the income budget.

The agency highlighted that the positive behavior in income was the result of higher tax revenues. The federation obtained 4.364 billion in non-oil revenues, an amount that represented an advance of 5.7 percent compared to January-August 2023 and greater by 137 billion pesos compared to the budget.

For value added tax (VAT), the federation collected 932 thousand 171 million pesos in the first eight months of the year, data that showed a real advance of 6.3 percent compared to the same period last year and was higher by 52 thousand 208 million pesos compared to those approved by the Congress of the Union.

For the special tax on production and services (IEPS), the federal government obtained 422 thousand 235 million pesos in the reference period, which meant an increase of 41.4 percent compared to January-August 2023, a result that was driven by the fuel-related component. Compared to the approved budget, it was lower by 35,619 million pesos.

Through income tax (ISR), which is linked to the country’s economic activity, the federation collected one trillion 834 billion pesos, an amount that showed a slight increase of 0.3 percent compared to the first eight months of last year. and lower by 26,543 million compared to what was approved by legislators.

The federation’s oil revenues totaled 684,808 million pesos until August, data that showed a real annual decrease of 7.7 percent, derived from lower crude oil production and a lower price of natural gas, factors that were partially offset by a higher oil price. The amount reported was lower by 61,677 million pesos compared to what was approved in the budget.

The Treasury highlighted that Pemex’s income grew 17.8 percent in real terms, as a result of the measures adopted to improve its financial situation.

The agency indicated that spending in the first months of the year amounted to 5 trillion 947 billion pesos, an amount that was 9.6 percent higher in real terms compared to the same period in 2023. The figure was lower by 8 thousand 136 million pesos compared to what was approved in the budget.

The Treasury highlighted that spending on social development increased 8.6 percent in real terms annually during

January-August. Internally, increases of 12.2, 10.7 and 6.7 percent were observed in the areas of health, social protection and education, respectively.

Expenditure on economic development accumulated through August registered an increase of 19.2 percent in real terms annually, driven by the energy and transportation sectors, which showed growth of 14.4 and 61.9 percent, respectively.

The net debt of the Federal Government stood at 14 billion 379 thousand 994.9 million pesos. Of the total, 83 percent corresponded to internal debt.

The Historical Balance of the Financial Requirements of the Public Sector (SHRFSP), which is the measure that includes all the liabilities of the public sector, amounted to 16 trillion 557 billion pesos at the end of August, while the net debt of the Federal Public Sector It stood at 16 billion 660 thousand 155.3 million pesos.