Mexico Executes 29% of 2026 ICT Budget in 1H26

Mexico’s federal government exercised MX$9.7 billion of its ICT budget during the first half of 2026, equivalent to 29% of the MX$33.4 billion approved for the year, leaving about MX$23.7 billion to be spent in the second half.

Mexico’s federal government exercised MX$9.7 billion (US$569 million) in Information and Communication Technologies (ICT) spending during the first half of 2026, representing 29% of its annual allocation. The pace remains broadly consistent with previous years, even as the federal technology budget has contracted for a second consecutive year.

The 29% execution rate is one percentage point above the level recorded in June 2025 and two points below the 2024 figure. Nominal ICT spending increased 2.9% compared with the same period last year, but the annual budget available to federal agencies has continued to decline.

“By the second quarter, 29% of the federal government’s budget had been spent, and this has been the trend every year since we began this study. In the second quarter of 2024, we recorded 31%; last year it was 28%, and this year it was 29%. There really isn’t a significant change in the pace of budget spending,” says Arely Reyes, Analyst, Select.

The figures point to a familiar pattern in federal technology procurement: a relatively limited share of the annual allocation is spent during the first half of the year, followed by a stronger concentration of contracting and execution toward the end of the fiscal cycle.

Technology Spending Remains Concentrated in Services

The composition of spending in the first six months also differed from the original structure of the 2026 ICT budget. ICT services accounted for 46% of the MX$9.7 billion (US$569 million) exercised through June. Most of this spending went toward data centers and application development, according to Reyes.

Telecommunications represented another 34% of exercised resources, while equipment accounted for 13%, primarily directed toward personal devices. Consumables represented 6% of spending. Software received approximately 1% of the exercised amount. This comes after the allocation for software licenses and programs was cut 47% from the previous year, making it one of the areas most affected by the broader contraction in technology spending.

At the beginning of 2026, ICT services represented 40% of the approved technology budget, telecommunications 38% and equipment 18%. The execution data therefore show a greater concentration in services than in the original budget structure, while hardware acquisitions progressed at a lower proportion.

The distribution reflects a government technology budget under fiscal pressure, with operational and infrastructure-related services absorbing a larger share of the resources that have actually been deployed.

Agencies Await Second-Half Acceleration

The institutions with some of the largest technology allocations also recorded relatively low execution rates through June. CEF had exercised 20% of its ICT budget, while the Mexican Social Security Institute (IMSS) reached 24% and the Institute for the Social Security and Social Services of State Employees (ISSSTE) reached 27%. Select found that most federal institutions were operating within a range of 20% to 30% execution.

The pace is not unprecedented. In the first half of 2022, the administration of former President Andrés Manuel López Obrador had exercised 25% of its ICT budget, equivalent to MX$8.034 billion at the time (US$471 million). The pattern became more pronounced in 2025. ICT budget execution increased from 28% in June to 47% in September, according to Select, while execution reached 84% by the end of 2024.

“It appears that the process is picking up speed a bit, according to some comments we've received. A significant portion of the budget is expected to be used in the next quarter. Once we have the data, we'll be able to see how it was used and what progress was actually made,” says Reyes.

For technology providers, the timing of government procurement can affect the distribution of annual revenue. Select previously estimated that numerous channels obtained between 50% and 70% of their income from government contracts and that delays in tenders contributed to double-digit declines for some companies in 2025.

Digital Projects Extend Beyond the Visible ICT Budget

The relatively low execution rate is occurring alongside the expansion of federal digital services and technology programs. Llave MX had reached 28 million accounts and 242 integrated systems by the end of June, according to the Agency of Digital Transformation and Telecommunications (ATDT). At the same time, the federal government began developing Coatlicue, a supercomputer project with an announced investment of MX$6 billion over 24 months (US$352 million).

These initiatives do not necessarily contradict the reduction in the ICT budget tracked by Select. The consultancy monitors identifiable technology allocations within the federal expenditure budget, while some digital programs can receive resources through other budget categories.

The distinction is relevant for understanding the scope of the MX$33.395 billion ICT allocation for 2026 (US$1.959 billion). The figure represents the technology spending visible within the budget lines analyzed by Select, rather than the total amount the federal government can direct toward digital transformation and technology-related initiatives.

Coatlicue is one example. Its US$352 million investment is distributed over 24 months and may therefore span more than one fiscal year. The full amount also does not necessarily appear within the ICT spending categories tracked by Select.

A similar structure applies to Infotec. Its 2026–2030 institutional program establishes plans for the public technology center to operate the Government of Mexico’s Software Factory and consolidate technology services from government agencies through its infrastructure. Infotec does not receive direct fiscal resources and instead generates income through services provided to other institutions. As a result, some technology spending associated with its operations can be recorded within the budgets of the agencies contracting those services.

The structure creates a gap between the technology resources visible in the federal ICT budget and the broader digital investment taking place across government.

The federal government has approximately MX$23.7 billion of its approved ICT allocation remaining for the second half of 2026 (US$1.390 billion). The recent execution pattern suggests that a substantial portion of those resources could be contracted later in the year, particularly in the third and fourth quarters. The government’s ability to accelerate spending will determine how much of the annual allocation is ultimately exercised.

The 2026 budget is already the result of two consecutive years of contraction. It fell 23% in 2025, from MX$44.223 billion to MX$34.054 billion (US$2.594 to US$1.998 billion), before declining another 1.9% in 2026.

The remaining budget therefore represents a smaller technology spending pool than in previous years. While federal digital projects continue to advance through different funding mechanisms, the execution of the identifiable ICT budget remains concentrated in the second half of the fiscal year.