Politics: The 2026 Budget Proposal advances but is too subordinated to political considerations
In the 2026 Budget Proposal (PPEF), total net public expenditure for the fiscal year is projected to increase a real 5.9%. Despite the declared need to reduce the fiscal deficit, social spending in politically oriented programs will receive a massive injection of resourses. This reflects the government’s decision to place political considerations and logic over economic criteria.
It is paradoxical that while the population’s income is increasing in part due to the massive growth of the social programs consisting of direct monetary transfers unconditional upon household income level, access to services that genuinely build opportunities for better personal development (education, healthcare, culture) is deteriorating because the budgets for the corresponding ministries have stagnated or been drastically reduced. Furthermore, the budget earmarked for promoting economic growth simply does not reflect it as a government priority.
Security is a major priority of the 2026 budget proposal and a key demand of society. It is also tied to the need to ward off U.S. threats to intervene in Mexico based on combating fentanyl trafficking to the United States, as well as President Donald Trump’s use of tariffs as a pressure tactic designed to force Mexico to beef up its border security and combat criminal organizations. The Ministry of Security and Citizens Protection under key Morena rising star Omar Garcia Harfuch is set to receive a whopping 74% increase in its budget, but more funding is needed to strengthen federal police forces. Budget spending on law enforcement is stagnant, and clearly deficient, given that 95% of crimes go unpunished. The security budget is moving in the right direction but with amounts that are clearly insufficient given the issue's huge ramifications.
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