Public sector spending registered, from January to October of this year, a slight under-exercise, that is, less than planned was spent, according to the Report on Finances and Public Debt of the Ministry of Finance and Public Credit ( SHCP).
The data revealed that in the first 10 months of the year, an expense of 5 trillion 137,577 million pesos was exerted, which meant an annual increase of 5.0%, the highest that has occurred for a similar period since 2018, when it was still low. the government of Enrique Peña Nieto, spending grew 5.3 percent.
However, a slight under-exercise was reported in the period. Treasury, in charge of Rogelio Ramírez de la O, expected the spending to be 5 billion 174,138 million pesos, that is, the sub-exercise presented was 36,561 million pesos.
This sub-exercise was explained by the part of the non-programmable expenditure, 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 where resources were exercised for 775,330 million pesos in the term.
The foregoing was 1.2% more than the expenditure that was exercised in the same item last year, but 34.525 million pesos less, due to lower resources that were allocated to the participations in the states, as well as to the adefas.
Likewise, the financial cost of the debt was 42,387 million pesos lower than expected. From January to October, 499,551 million pesos were exercised, 6.8% less than last year.
In the case of programmable spending, which is intended to provide public goods and services to the population through government agencies, it was for a total of 3.8 trillion pesos, 7.5% more than last year.
In addition, in this type of expense, 40,351 million pesos were exercised more than those programmed for January to October 2021.
Higher social spending
In the social development part, the Ministry of Finance reported that social protection had an expenditure of just over 1.02 trillion pesos from January to October of this year, which meant an annual growth of 4.1%.
“Expenditure on social protection represented, on average for January-October 2019-2021, 26.4% of the total programmable expenditure, a percentage higher than that registered during previous administrations (18.4% in the 2013-2015 period and 18.1% in the 2007-2009), in line with the objective of strengthening and expanding the social protection network ”, highlighted the agency.
In total, social development spending was 2.3 billion pesos, 2.1% more than last year, while that of economic development was 1.2 billion, 22.5% more than last year thanks to progress in investment projects in energy, communications and transportation, said Hacienda.
Primary surplus
The agency also reported that the primary surplus was located in the first 10 months of the year at 140.4 billion pesos, which it qualified as something favorable with the programmed deficit of 13.7 billion pesos.
With regard to the public deficit, it stood at 351,000 million pesos, 204,900 million pesos lower than programmed.
Meanwhile, the Historical Balance of the Financial Requirements of the Public Sector – debt in its broadest measure – stood at 12.5 trillion pesos, 9.8% more than at the end of 2020, which the Treasury explained was due to the increase in the rate. exchange rate of the peso against the dollar.
Reference-www.eleconomista.com.mx