Mexico public spending driven by pensions and Pemex investment

Mexico's Ministry of Finance (SHCP) faced a significant spending burden in the first half of the year, with 2.035 trillion pesos allocated to pensions, welfare scholarships, debt servicing, and Pemex transfers. This represents 28.68% of the total 7.095 trillion pesos spent during the first six months. These mandatory costs limit the government's capacity to redistribute funds toward public health, infrastructure, and productive investment for the 2027 Economic Package.

In July 2026, public investment saw a notable increase, driven largely by state-owned enterprises. Total spending on construction and goods reached 70.755 billion pesos, a 62.6% real increase compared to July 2025. This growth was primarily fueled by Pemex, which increased its physical investment to 13.418 billion pesos, a 130.6% annual rise. Conversely, the Federal Electricity Commission (CFE) saw a 20.5% decrease in spending during the same period.