Politics Economy Local 2025-11-20T01:10:14+00:00

Political and Economic Negotiations Around Mexico's Budget

Mexico's opposition considers approving the budget and electoral reform. The focus is on state debt, gender restrictions, and upcoming elections.


Political and Economic Negotiations Around Mexico's Budget

The opposition does not rule out approving the Revenue and Expenditure Law by the end of 2025 and postponing the debt—attempted at 8,000 million pesos—until the next year, when the state government has made some deposits to municipalities and 'Agua y Drenaje' advances in its projects. Despite discontent among the PRI-PAN and MC over the conditions of the 2026 Budget, at Cantera Palace, they point to delivering the Fiscal Package proposal as it was shown to lawmakers earlier this week. In the environment of the Secretary of Government, Miguel Flores, they trust this can be met without any problem. On the other hand, the opposition also seeks to pass the Electoral Reform to avoid restrictions in the 2027 elections and ensure Adrián de la Garza's participation in the next elections, without risking bastions like Apodaca, San Nicolás, and Santiago, where, if MC's intention is confirmed, there would be an obligation to nominate women. Although Governor Samuel García has already stated he will wait for the homologation of the federal reform, PRI-PAN is rushing negotiations with Morena to lift the gender restrictions that MC aspires to. In fact, sources shared with this publication that a bloc of 4T lawmakers is preparing its own electoral reform for the coming weeks, which could open this negotiation angle between the opposition and Morena. It is understandable: Some Morena deputies are convinced, after meeting with Luisa María Alcalde, that they must be more confrontational against MC; also, at the National Palace, they also seek to avoid restrictions in the next elections so that President Claudia Sheinbaum can have an open electoral maneuver. On November 20, Miguel Flores, Carlos Garza, and other officials will go to the local Congress to deliver a Budget proposal, which will be modified in the coming weeks. Negotiations will be extended until December. According to what LPO learned from legislative sources, a problem in the negotiations is the 'Agua y Drenaje' debt of 2,400 million pesos. This will be a lock on financing without the need to legislate. Of course, the Fiscal Package will have to include favorable points such as an increase to autonomous organisms, the retention of INFO NL, as well as an increase in municipal participations. Last year, similar financing was granted, and none of the proposed projects, including Monterrey V, which would end the water shortage in peripheral municipalities, were fulfilled. Additionally, they demand that the Executive's general debt be tagged with specific projects.