MORENA Allocates Funds to Autonomous Bodies Set for Termination

MORENA and its allies allocated over MX$1 billion to the National Institute for Transparency, Access to Information, and Protection of Personal Data (INAI), the Federal Economic Competition Commission (COFECE), and the Federal Telecommunications Institute (IFT) to facilitate employee compensation settlements and to ensure their continued operation in the months leading up to their planned dissolution in 2025.

The 2025 Federal Expenditure Budget (PEF 2025) allocates MX$500 million to INAI, MX$500 million to IFT, and MX$200 million to COFECE. Ricardo Monreal, Senate Coordinator, MORENA, explained that the funds would cover the remaining operational period until the regulatory transition is completed, which is expected to take up to 180 days. Additionally, the funds will be used for severance payments to trusted personnel, contract employees, or those opting for early retirement in accordance with legal provisions.

It was also confirmed that no additional funds will be allocated to the Ministry of Anticorruption and Good Governance, which is set to assume functions previously held by INAI. The Ministry of Anticorruption and Good Governance will receive MX$1.7 billion in 2025, reflecting a 0.46% reduction compared to its 2024 budget of MX$1.706 billion.

Proposal for Restructuring Autonomous Bodies

In August, the Constitutional Points Committee of the Chamber of Deputies approved the elimination of seven autonomous bodies, including CRE, CNH, and COFECE. The reform also considers the elimination of the IFT, the National Council for the Evaluation of Social Development Policy (CONEVAL), the National System for Continuous Improvement of Education, and INAI. 

Previously, the Business Coordinating Council (CCE) warned that the disappearance of these autonomous bodies could have a negative economic impact of 0.3% points on GDP due to a decline in private investment. “In terms of employment, this would have a significant impact. The reduction in investment alone would mean failing to create just over 60,000 jobs. A one-percentage-point decrease in total GDP growth would mean failing to generate 200,000 new jobs,” the organization warned.