“As of October 2021, public finances remain solid. Public sector revenues reached 4.8 trillion pesos, an amount greater than that programmed by 138.7 billion pesos. The real increase in VAT collection of 11.5% due to the strengthening of the domestic market stands out, ”said the Treasury in a statement.
The SHCP detailed that at the end of October tax revenues showed a real growth of 1.6% compared to the January-October period of the previous year.
“Throughout the first three years of the six-year term, on average, tax revenues in January-October have represented 62.6% of total revenues, which shows less dependence in public finances on oil revenues and improvements in the tax framework ”, highlighted the dependence to one day of the current federal administration turning three years, half of its term.
Oil revenue on the rise
The oil revenues of the public sector registered a real annual growth of 64.3% compared to the period January-October 2020, mainly due to the increase in the price of oil. In the interior, the revenues of the federal government and Pemex showed real annual increases of 33.2 and 85.3%, respectively.
The non-programmable spending of the public sector was lower by 76,900 million pesos than programmed and presented a real annual reduction of 2.1% with respect to January-October 2020. The financial cost presented a real annual decrease of 6.8%, while the participations to the states showed a real growth of 3.5%.
The primary surplus stood at 140,000 million pesos, which compares favorably with the programmed deficit of 13,700 million pesos. For its part, the public deficit was 351,000 million pesos, an amount 204,000 million pesos lower than the programmed amount.
