CDMX Congress Approves 2025 Budget of MX$291.525 Billion

The Mexico City Congress has approved the 2025 Expenditure Budget, amounting to MX$291.525 billion, with a primary focus on key investments in the Metro, public safety, housing, culture, health, education, and social programs. The budget, which aligns with the proposal submitted by Mayor Clara Brugada on Dec. 20, passed unanimously with 65 votes in favor and no opposition.

The budget includes MX$23 billion for the Metro system, marking an 11.9% increase after adjusting for inflation. This investment will fund projects such as the modernization of Lines 3 and A, track improvements on Line B, and maintenance of escalators, elevators, and stations. Additionally, MX$6.951 billion will be allocated for mobility projects, including three new Cablebús lines, a new Metrobús line along Circuito Interior, and continued efforts to modernize public transportation and replace microbuses.

Resources will also be directed to social infrastructure projects aimed at improving public safety and urban mobility, including the construction of 16 UTOPÍAs, a floating road in Tlalpan, and the Safe Women’s Routes program, which focuses on road safety and urban lighting.

Water Management, Security and Social Welfare Programs

The newly created Ministry for Water Management will receive MX$15 billion, with a focus on replenishing the city’s underground water reserves. In security, the budget includes MX$600 million for surveillance cameras and systems in preparation for the 2026 FIFA World Cup. 

Funding for social programs will increase by 12.7%, rising from MX$15.085 billion in 2024 to MX$17 billion in 2025. This increase will support the introduction of four new programs and the expansion of existing ones. The education sector will receive a 212% increase in funding for school renovations, while the housing budget will grow by 90%, with MX$9 billion allocated for housing projects.

Ecological and Code Taxes

The budget also introduces an Ecological Tax of MX$58/t of CO2 emitted by fixed sources with monthly emissions of one ton or more. The funds generated from this tax will be allocated to environmental conservation and animal welfare efforts.

The revised Tax Code also includes adjustments to the payroll tax, introducing a progressive rate structure that benefits small businesses: 3% for businesses with 1 to 10 employees, 3.5% for businesses with 11 to 50 employees, and 4% for larger companies. PAN raised concerns about the impact of these measures on small businesses, arguing that the city government is shifting a tax burden onto these enterprises.