CRE, CNH Go Over Budget Amid Austerity Policies

CNH and CRE exceeded their budget in 2022. The budget of these autonomous regulatory bodies increases every year, according to the Ministry of Finance and Public Credit (SHCP). President López Obrador has announced his plan to dissolve autonomous government entities, such as these regulators, citing their high financial cost amid his austerity policy. Other actors have expressed concern about the president's proposal, however. Nevertheless, the president even considers using CRE’s budget to finance his proposal to reform pensions.

Over the past three years, the Public Treasury Account has reported on the commissions’ budgets, with CRE spending MX$696.551 million (US$40.41 million) more than budgeted, as reported by Excélsior. The hiring of temporary positions and salary increases impacted on the budget executed.

In 2022, CRE’s budget was MX$444 million, representing an increase of 73.1% compared to the approved budget of MX$256.51 million. According to the Public Treasury Account in 2022, 99.9% of the commission’s budget was used to cover Chapter 1000 expenses (Personal Services), while 0.1% was destined to Chapter 2000 (Materials and Supplies). Operating Expenses were financed through budgetary adjustments to expand CRE’s budget, coming from the collection of Rights and Benefits.

Meanwhile, in 2022, CNH’s budget went 189.7% overboard, compared to the originally approved budget. Expenditures on Personal Services amounted to MX$333.51 million, an increase of 50.1% compared to the originally approved budget of MX$222.142 million.

Originally, budgetary resources of MX$718,900 were allocated to Operating Expenses. However, derived from budgetary increases supported by surpluses from benefits, MX$243.564 million were executed, representing an increase of 33,778.2% compared to the approved budget.

President López Obrador has repeatedly stated his intention to dissolve autonomous bodies such as CRE and CNH, while he has preached his austerity policy. He says these budgets represent a burden for public finances. Throughout his administration, López Obrador has blocked appointments to the boards of these bodies, reduced their budgets, sought to limit their power, and threatened to abolish them. He had announced his intention to dismantle them in December, saying that "they are useless.”

The president has also considered using the dissolved bodies' budget to finance his pension plans. The proposal to reform the pension system, which will be presented on Feb. 5 in Mexico, will focus on the federal government making contributions to guarantee that workers receive pensions equivalent to their last salaries, as reiterated by López Obrador.

COPARMEX has expressed concerns over the president’s proposal to terminate CRE and CNH, vehemently rejecting the initiative. These autonomous entities were established to safeguard citizens against abuses from authorities, social injustices, and violations of fundamental rights, COPARMEX states.