Chamber of Deputies Approves Federal Budget for 2025
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Chamber of Deputies Approves Federal Budget for 2025

Photo by:   Vitaly Taranov
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Paloma Duran By Paloma Duran | Journalist and Industry Analyst - Tue, 12/17/2024 - 10:10

The Chamber of Deputies has approved the 2025 Federal Expenditure Budget (PEF) in general terms, despite concerns raised by opposition parties over reductions in public spending in crucial areas such as health, security, investment, and other sectors.

With 348 votes in favor, 129 against, and no abstentions, the deputies approved a budget allocation of MX$9.3 trillion for the coming year, reflecting a real decrease of 1.9% compared to the 2024 approved budget. This reduction is part of the government's broader fiscal consolidation strategy, which aims to lower expenditures, while simultaneously increasing public revenues by 5.4%. 

Following the general vote, the plenary in San Lázaro began discussing specific amendments, addressing 1,029 reservations from various parliamentary groups. Opposition members criticized the budget, arguing that it fails to adequately address critical sectors such as security, infrastructure, and education. “Despite reallocations, major national projects will remain underfunded. The Sheinbaum administration has implemented cuts across several areas, including a 14% reduction in investment and a substantial 42% cut in public security funding,” stated PRI Deputy Rubén Moreira.

The reduction in health funding was also criticized, as the budget was cut by 11% to MX$918.447 billion, representing just 2.5% of GDP—the lowest level since 2019. “In 2020, the system covered 126 million people without social security, and by 2025, this number is expected to rise to 136 million. According to the third transitional article of the constitution, health allocation cannot be reduced in real terms compared to the previous year's budget … The approved budget for 2024 was MX$1.032 trillion, but for 2025, it has been reduced to MX$918 billion, a cut of MX$113 billion. This decision is clearly unconstitutional,” said Éctor Jaime Ramírez, Deputy, PAN.

Opposition members also questioned the MX$44.421 billion in reallocations, arguing that the amount was insufficient in relation to the overall budget. “The budget is overly centralized. While MORENA proudly announced the reallocation of MX$44 billion, it simultaneously reduced funding for areas outside the President's control, cutting more than MX$30 billion from autonomous bodies,” remarked PAN Deputy Héctor Saúl Téllez.

Meanwhile, Ricardo Monreal, Coordinator, MORENA, celebrated the swift approval of the 2025 PEF, noting that it was completed in less than 12 hours of discussion. "We spent less than 12 hours approving it in both general and specific terms, and this is the first time in many years that the Chamber of Deputies has exercised its authority to reallocate resources. It is also the first time that the streets surrounding San Lázaro are free of protesters, because people know we are approving a realistic and responsible budget that will provide solutions for the country," he stated.

Photo by:   Vitaly Taranov

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