Mexico federal funding cuts impact 23 states due to tax revenue drop

Federal Deputy Rocío González Alonso, president of the Commission on Federalism and Municipal Development, has denounced a reduction in federal participations affecting 23 Mexican entities. She stated that this decrease occurs at a critical time for states and municipalities facing severe budget constraints.

The reduction is attributed to a 9.8% decline in Income Tax (ISR) collection. González Alonso argued that this drop reflects stagnant economic growth and deficient management of public finances, contradicting official government claims of a strong economy. She noted that while the government highlights historic exports, declining tax revenues indicate an economic deceleration that the administration refuses to acknowledge.

According to the legislator, the lack of funds is impacting essential services, including road maintenance, infrastructure, hospital supplies, healthcare systems, and public safety. She warned that the reduction weakens the ability of local governments to respond to population needs, affecting basic services like potable water, drainage, and public lighting, as well as social programs.