The year 2024 will mark a milestone in the financial history of Mexico since the Congress of the Union authorized the government of Andrés Manuel López Obrador to contract a debt of 2 trillion pesos, an amount that triples the internal debt and five times more than the debt external concerning 2023.
Thus, 2024 will be the year of Mexico’s historic debt due to the drastic growth of internal debt which means 70% more, amounting to 1.99 trillion pesos, and an unprecedented increase of 227% in external debt, reaching 18 thousand million dollars, compared to the previous year.
To measure the sea of money that this means, it means that one in every 5 pesos of public spending will come from debt, which calls into question the economic sustainability of the country.
And contrary to expectations, less than half of this money will be allocated to infrastructure such as the works still in progress on the Maya Train and Dos Bocas.
The other part will be directed to current spending, including payrolls, subsidies, and social support.
The Constitution establishes that when debt is acquired it must be used for profitable public works, monetary regulation, debt restructuring, and attention to national emergencies.
The opposition has already taken this issue to the Supreme Court of Justice of the Nation, arguing that they do not comply with what the law establishes to contract debt.
On October 19, the Chamber of Deputies approved the draft decree that issues the Federal Income Law as part of the 2024 Economic Package.
Thus, the Income Law projects a total income of 9 trillion 66 thousand 45.8 million pesos, while the net internal debt will reach up to 1 trillion 990 billion pesos. This means the government plans to spend more than it expects to raise in 2024, covering the difference with significant public debt.
TYT Newsroom
