The fiscal crisis that the government is currently facing is a consequence of a debt service spiral that cannot be financed. For a couple of years now, warnings have been issued regarding the mismanagement of public finances, anticipating an increase in the deficit and debt, a situation that has now materialized. Despite the record historical collection of income tax in a month registered in March of this year, the difference with government spending has not significantly reduced.
A real government deficit is observed, reflected in the lack of resources to cover public services, affecting areas such as health, with a shortage of medicines and materials in clinics and hospitals, as well as problems in the supply of vaccines. Despite ongoing indebtedness, public services are in crisis, which could trigger a serious economic situation if rating agencies raise their risk assessment for Mexico.
Although possible solutions such as getting rid of Pemex, reducing pensions, or other necessary adjustments have been mentioned, it does not appear that the government will take effective measures to resolve the situation. The historic collection obtained by the Treasury in March of this year amounts to 391 billion pesos from income tax, reflecting a significant amount that has not managed to mitigate the problem of fiscal deficit and debt. The balance of financial requirements continues to increase, reaching 5.5 percentage points of GDP in this first quarter, which accentuates the fragility of the country's financial situation.
