Mexico City’s 2025 Budget Prioritizes Mobility, Infrastructure

Mexico City Congress has approved the Economic Package for 2025, which aims to ensure balanced, healthy finances for the capital and position it as the first entity in the country to generate more local revenue than federal contributions. The proposed budget prioritizes key areas such as water, transportation, mobility, and infrastructure.

“With this proposed Income Law, we have managed to balance and exceed local revenue in comparison to federal contributions, guaranteeing healthy finances; we were previously behind, but with this initiative, we have achieved a significant increase,” says Mexico City’s Mayor Clara Brugada.

A key element of the 2025 Economic Package is a major boost in investment, including a historic allocation of MX$23 billion (US$1.14 billion) to the city’s Metro (STC), a vital component of the city’s mobility system. Brugada highlights that the Metro will be a top priority over the next six years. Additionally, a study will be conducted during 1H25 for the renovation of Line 3, focusing on basic engineering to secure financing. This process will also be applied to Line A. Among other improvements, a network of 5,000 video surveillance cameras will be installed across all Metro stations and a new Command and Control Center (C2) will be created. Escalators and elevators will also be modernized, while station facades and floors will be refurbished.

Another significant initiative includes MX$6.95 billion (US$344.41 million) allocated for mobility and electromobility projects. These will fund the construction of three new Cableway lines, a new Metrobus line on the Circuito Interior, an expanded Ecobici system, the scrapping of microbuses, and the modernization of public transportation. 

The proposed mobility budget also includes initiatives to ease the entry and exit of fans at the Azteca Stadium due to the FIFA World Cup 2026, which Mexico will host alongside Canada and the United States. These projects will be allocated nearly MX$7 billion (US$348 million), a 186% increase from the 2024 allocation, says Juan Pablo de Botton, Minister of Administration and Finance for Mexico City, to Bloomberg News. 

Simultaneously, MX$600 million (US$29.71 million) will be allocated for cameras and security systems in preparation for the 2026 FIFA World Cup. The budget for the Ministry of Tourism will increase by 138.2% in preparation for the World Cup.

Sustainability, Water, and Growth

The budget also allocates MX$13.5 billion (US$669.04 million) to projects such as the construction of 16 Utopias, the Tlalpan Floating Highway, and the creation of secure pathways for women, among other urban transformation initiatives. 

Additionally, MX$15 billion (US$743.22 million) will be invested in the city’s water system to rehabilitate wells, improve water treatment, and address water scarcity through the infiltration of millions of liters back into the underground water supply, ensuring the city’s water balance. 

The fiscal package also includes measures to support local businesses. The payroll tax (ISN) will provide benefits to 93% of companies in the city, with micro-businesses continuing at a 3% rate and small businesses receiving a fiscal benefit equivalent to 0.5% of the new rate, in line with the Law for the Development of Micro, Small, and Medium-Sized Enterprises (MSMEs).

Social programs will also receive a significant boost thanks to a MX$17 billion (US$841.41 million) allocation, 15% more than the previous year. This will also allow for the creation of four new programs. Education will see a 212% increase, aimed at renovating schools in need of repair and introducing new educational initiatives. The culture sector will also see increased funding.

Although healthcare resources are primarily managed at the federal level, the Mexico City government will increase its health budget by 1%. To meet the demand for affordable and dignified housing, MX$9 billion (US$445.92 million) will be allocated, representing a 90% increase compared to the previous year.

The city’s 16 boroughs will receive a historic 8.8% increase in their budgets, totaling MX$53.5 billion (US$2.65 billion), marking the largest growth in over 20 years.

Juan Pablo de Botton, Minister of Administration and Finance of Mexico City, presented the 2025 Economic Package to the local Congress, stating that it combats inequalities and prioritizes essential areas like infrastructure, mobility, and social services. He adds that it includes a proposed ecological tax.

Finally, de Botton adds that the city will collaborate with the State of Mexico to reduce greenhouse gas emissions by 24% by 2030. Mexico City also projects a 0.5% real net debt reduction, consistent with the city’s goal of maintaining healthy public finances.