Tax Collection Breaks Records in January 2023
The first month of 2023 was the best January of the past five years for tax collection, leaving Mexico with healthy public finances, reports the Ministry of Finance and Public Credit (SHCP). During the month, fiscal balances stood at favorable levels, reports SHCP, which attributed the success to keeping debt under control.
Stronger tax collection led to an increase in total tax revenues of 6.3% in real terms per year in January 2023. Oil and tax revenues registered a real annual growth of 11.2% and 5.5%, respectively. The SHCP explained that the budget’s balance will be the focus for monitoring from now on, instead of the public balance.
The ministry indicated that income tax (ISR) was the largest contributor to tax revenues during the months, while collection of the special tax on product and services (IEPS) increased for the third consecutive month.
The SHCP added that spending on education increased by 16.1%, while investment in science, technology and innovation increased by 8.8% in real terms, in comparison to January 2022. “The Federal Government continues to invest in projects that directly impact the well-being of families and the economic development of the country,” explains SICT via a press release.
The SHCP broke down Mexico’s Timely Statistics of Public Finance on a report that includes the Federal Government’s data on balance sheets, revenues, expenses, financing, non-financial parastatal entities, financial parastatal entities, budgetary public sector and federal public sector and transfers to states and municipalities.
“The direct physical investment of the Federal Government was 1.8 times higher in real terms compared to the same month of 2022, while the support for investment in favor of federal entities and municipalities grew 10% real per year and represented 56.6% of the total physical investment,” explains the SHCP.