Mexico Cuts Health Spending to Lowest Level Since 2010

In the face of ongoing economic uncertainty and efforts to meet fiscal consolidation targets, Mexico’s public health expenditure fell to its lowest level in over a decade during 1Q25, according to data from the Ministry of Finance and Public Credit (SHCP).

The Public Finance and Public Debt Report for the first quarter shows that the government spent MX$151.73 billion (US$7.59 billion) on health from January to March, a 14.3% decrease compared to the same period in 2024. This marks the lowest first-quarter expenditure since 2010, when health spending totaled MX$138.89 billion, reports El Economista. Health expenditure refers to all spending related to delivering healthcare services, including family planning, nutrition programs, and emergency health aid. However, it does not cover costs associated with providing drinking water or sanitation services, according to the WHO.

Health sector spending last year accounted for 2.7% of the national GDP. Although that figure represents the upper limit of the historical range of 2% to 2.7%, it remains well below the World Health Organization’s (WHO) recommended threshold of 6%.

At the quarterly press briefing, SHCP officials were asked to explain the apparent underspending and reductions in the health budget. Bertha Gómez, Deputy Minister of Expenditures, rejected the notion of budget cuts, describing the changes as necessary reallocations.

Despite the official stance, the drop in health investment raises concerns among observers about the sustainability of healthcare financing and Mexico’s ability to strengthen its health system. The gap between current spending levels and international recommendations continues to highlight structural challenges in aligning health funding with population needs. 

According to a study published in the Shiraz E-Medical Journal, public health expenditure is more effective than private health expenditure in improving health outcomes. Therefore, governments would benefit from allocating sufficient financial resources to support and enhance public health.

“When a government attributes proportionately less of its total expenditure on health, this may indicate that health, including nutrition, is not regarded as a priority,” says WHO.