Public spending stagnates in the first five months of 2022

Public spending stagnates in the first five months of 2022

The Treasury explained that from January to May of this year, the expense for the payment of payroll to public servants (personal services) fell 3.8%, while that corresponding to the payment of materials and supplies for the operation of public institutions fell 20.6%.

Capital spending, which serves to fuel economic growth, also reported a 2.9% drop.

Figures from the Public Finance and Debt Report indicate that the expenditure of autonomous bodies was reduced by 8.2%, that is, 13,448 million pesos (mdp) less compared to what was programmed; Pemex’s was also reduced by 14.6%, which represents 78,378 million pesos less than budgeted.

states win

While current spending was reduced, transfers of resources from the federal government to the states through Participaciones grew by 13.5% in real annual terms, and the financial cost of public debt increased by 1.3%.

Participations to states and municipalities were higher by 53,334 million pesos due to the good unemployment of the participating federal collection, which registered an annual increase of 13% in real terms, the Treasury pointed out.

Another item that increased its spending was that of spending on pensions with 5.8% more annual real.

It should be noted that Participations, pensions and the financial cost are mandatory expenses for the public sector.



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