In the five years that Andrés Manuel López Obrador has been President of Mexico, four government ministries have seen their budgets increase by up to 609%, including Energy, Well-being, National Defense, and the Navy. However, others have experienced greater budget cuts, such as Health, Tourism, Labor, and Economy. The difference is that the former ministries concentrate on the President’s major programs or construction projects.
Among the ministries with budget cuts—when comparing the budget allocated in 2019 with the one requested by the Executive Branch for 2024—the Ministry of Health expects to have 21% fewer resources, possibly decreasing from 122.5 billion to 96.9 billion pesos for the next year. One explanation is that the President proposed allocating 128.6 billion pesos to IMSS-Bienestar, an entity created by this government to provide free health services.
Another ministry that has faced cuts is Tourism, which received 8.7 billion pesos in 2019, while the Budget Project for 2024 proposes a budget of 1.9 billion pesos, equivalent to a 77% reduction in resources since the beginning of López Obrador’s term. The Ministry of Labor and Social Welfare is in a similar situation, as it would have 33% less if the project is approved by lawmakers. The Ministry of Economy, Agrarian Development, and the Office of the President are also facing budget reductions.
In contrast, the Ministry of Energy has seen its budget grow by 609% from 27.2 billion to 165.9 billion pesos from 2019 to 2024. This is due to the ministry’s involvement in the construction of the Dos Bocas refinery.
Following closely with a 261% increase is the Ministry of Well-being, responsible for López Obrador’s flagship social programs such as the Pension for Older Adults, which will increase to 6,000 pesos every two months in the midst of an election year.
The Budget Project also proposes a 176% increase in the budget of the Ministry of National Defense (Sedena) when comparing 2019 and 2024, from 93.6 billion to 259.4 billion pesos. This increase is because the ministry is now responsible for the construction of the Tren Maya, which has already incurred cost overruns of up to 208%.
The Ministry of the Navy is in a similar situation, with its budget projected to grow by 124%, from 32.1 billion to 71.8 billion pesos over nearly five years. Both ministries, Sedena and the Navy, acquired greater responsibilities in this government, which were previously the responsibility of the Ministry of Communications and Transportation and the Ministry of Public Security.
The Budget of the Federation for 2024 was sent by the Executive Branch to the Chamber of Deputies, which will analyze, discuss, and vote on the proposal.
TYT Newsroom