Hidalgo Leads Mexico in Federal Participation Fund Growth

The state of Hidalgo recorded the highest national increase in resources allocated to Mexico's Federal Participation Fund (FGP), posting an 8% rise in the second half of 2026. Under Governor Julio Menchaca Salazar, Hidalgo’s FGP resources have grown 40% since the start of his administration, outpacing the 25% growth recorded in the previous term.

Local revenues surged 96% between 2021 and 2025, climbing from 4.916 billion to 9.636 billion pesos. Payroll tax collections more than doubled, from 1.426 billion to 2.961 billion pesos. The state topped the SAT’s Global Efficiency Board and received positive assessments from rating agencies such as Fitch Ratings, Moody’s, HR Ratings and S&P Global. Collaborative agreements with municipalities boosted property‑tax and water‑supply fee collections, further strengthening the formula used to calculate federal participation payments.