Mexico’s 2026 Federal Budget Totals MX$10.1 Trillion

Mexico has approved a federal budget of MX$10.19 trillion (US$549 billion) for 2026, according to the Federal Expenditure Budget Bill (PPEF). The plan allocates resources to state-owned enterprises, health and social security institutions, social programs, transfers to states, and debt service, while incorporating measures for fiscal discipline and oversight.

The government projects a budget deficit of MX$1.39 trillion, the gap between projected revenue and expenditures. The decree notes that the budget is structured under the Federal Budget and Fiscal Responsibility Law, with oversight by the Ministry of Finance and other regulators.

State-Owned Enterprises

For Petróleos Mexicanos (Pemex), the budget sets a financial balance target of MX$263.47 billion and a personnel services ceiling of MX$118.20 billion. The Federal Electricity Commission (CFE) is assigned a balance target of MX$20.68 billion and personnel spending cap of MX$86.29 billion. Both are aimed at managing liquidity, labor costs, and operational viability.

Social Security Institutions
The Mexican Social Security Institute (IMSS) is authorized to spend MX$1.59 trillion. This includes federal contributions of MX$158.76 billion for insurance, MX$795.82 billion for pensions, MX$8.74 billion for obligations under the Social Security Law, and MX$22.1 million to comply with the 2019 labor and social security reform. IMSS must also allocate MX$31.31 billion to reserves for benefits and labor obligations, with restrictions on their use.

Debt Service
Servicing federal government debt will cost MX$1.29 trillion. Including state-owned enterprise obligations and financial support programs, the total rises to MX$1.57 trillion, making debt service one of the largest budget items.

Transfers to States
Transfers remain central to the budget. Ramo 33 Aportaciones Federales are distributed based on INEGI population and GDP per capita data. At least 10% of the Social Infrastructure Fund must go to Indigenous and Afro-Mexican communities, while 20% of FORTAMUN funds must support public security. Aportaciones Múltiples must allocate 64% to basic education, 4.72% to upper-secondary, and 31.28% to higher education.

Social Programs and Policy Priorities

• Sustainable Rural Development: MX$416.6 billion

• Science, Technology & Innovation: MX$136.7 billion

• National Energy Transition Strategy: MX$73.2 billion

• Gender Equality Programs: MX$122.4 billion

• Social care and vulnerable groups: MX$108.9 billion
   

Austerity and Fiscal Discipline
The budget limits the creation of new positions, restricts public sector pay increases to preserve 2025 purchasing power, and bans extraordinary compensation at the end of appointments. Agencies must consolidate procurement, use institutional insurance, and publish contracts on the Transparency Budget Portal. Savings must be redirected to social programs and infrastructure.

Oversight and Transparency
Federal entities must submit quarterly spending reports covering deviations, reserve use, and infrastructure progress. The Ministry of Finance will release project data in open formats. Communication spending is restricted: agencies may only contract advertising when official slots are unavailable, at least 5% must go to print media, and no budget increases are allowed during electoral campaigns, except for preventive or emergency notices.

The decree takes effect on Jan. 1, 2026. The Ministry of Finance may authorize adjustments during the year, provided they are proportional and reported to the Chamber of Deputies.