Public sector spending grew 5.6% in the third quarter

Total spending by the public sector, in the third quarter of the year, totaled around 4.7 trillion pesos, a growth of 5.6% compared to the same period last year, revealed the Ministry of Finance and Public Credit (SHCP).

This is the largest increase observed in the net spending of the budgetary public sector, for a similar period, since 2014, when it increased 8.3 percent.

According to the Public Finance and Public Debt Report corresponding to the third quarter, 23,998 million pesos were exercised more than what was programmed for the period. The greatest resources with respect to what was budgeted were observed in programmable spending, destined to provide public goods and services to the population through government agencies. In this area, an expense of 3.4 trillion pesos was exerted, 8.5% more than a year ago and 102.243 million pesos more than programmed.

“The strength of tax revenues and the savings in non-programmable spending allowed an increase in spending for the social protection of the population and the economic development of the country. At the end of September, spending on social protection and health was 933,700 million and 456,000 million pesos, respectively, the highest figures since 2007, “said the agency.

In the breakdown, it was observed that the productive companies of the state –CFE and Pemex– presented the highest increase in their spending, with an annual rate of 17.9%, while in the administrative branches the increase was 14.3 percent.

Tourism and Energy spend more

Within the administrative branches, it was observed that the two secretariats that increased their spending the most in the third quarter of the year, at an annual rate, were those of Tourism and Energy.

In the case of the Ministry of Tourism, it spent 24,841 million pesos, 272.9% more than last year, although 1,925 million pesos below what was programmed.

This increase was due to higher spending on mass transportation infrastructure, while lower spending than scheduled was due to the fact that fewer resources were allocated to mass passenger transportation projects and for the promotion and promotion of investment in the sector.

In the case of the Ministry of Energy, spending was 169,830 million pesos, 218.5% more than in the same period last year and exceeded what was programmed by 123,187 million pesos.

The higher spending on schedule and the growth in annual comparison was due to the government’s equity contributions to Pemex to strengthen the investment of the Dos Bocas Refinery and its financial position, according to the Treasury.

Financial cost falls

In the case of non-programmable spending, which considers the resources for the fulfillment of obligations, such as the payment of debt and the money that is transferred to the states and municipalities, 709,733 million pesos were exercised, 2.0% more than last year , but with a sub-exercise of 32,132 million pesos.

Within this, it was observed that the financial cost decreased 7.8%, while the participations to the states and municipalities increased 4.3% compared to the period from January to September of last year.

In the case of the Historical Balance of Public Sector Financial Requirements (SHRFSP) –the debt in its broadest measure– it was located at 48.5% of GDP.

“At the end of September, the net debt of the Public Sector stood at 12 trillion 581,544 million pesos and the SHRFSP amounted to 12 trillion 640,863 million pesos. This is equivalent to 48.5% of GDP, a level consistent with the estimated reduction in debt from 52.4% in 2020 to 51.0% of GDP at the end of 2021 ”, indicated the SHCP.

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