In the face of a 5 billion peso subsidy for gasoline and diesel, the federal government is preparing spending cuts, without affecting the budget for social programs, revealed President Claudia Sheinbaum. During her press conference at the National Palace, the head of state did not specify in which government areas the adjustments would be made. She noted that although the subsidy is around 5 billion pesos for the Special Tax on Production and Services (IEPS), the revenues are offset by exports and the tax that Pemex pays to the treasury, which corresponds to 30 percent of production, so the subsidy is actually around 2.5 billion pesos. When questioned about how long the government can maintain this support, the head of the federal executive emphasized that it must be maintained and highlighted that income and expenses are reviewed every week. "We have to maintain it, and that means more austerity, because we have to guarantee the welfare programs, support for education, support for health, housing programs, and investment. Guarantee the welfare programs we committed to and at the same time seek support so that there is no inflation, because inflation greatly affects those who have the least," she added. According to the analysis "The oil market ignites due to a geopolitical spark" by Skandia, the Mexican government, with fiscal stimuli to the IEPS, absorbs part of the increase in international fuel prices. However, the report warns, "these policies have a cost for public finances, as they reduce the fiscal revenues that would normally be obtained from the sale of fuels." "So, of course, every week we are reviewing revenues, expenditures, and projections towards the end of 2026," she stated. "That is why the country's economic development is also very important for us, which is why the welfare hubs are important and greater investment in Mexico, to guarantee the economic growth we outlined in the projections," she commented. –"So will there be cuts to certain areas of the administration, will we have to slim down spending even more?" "What we are looking for is to reduce the government's operational costs to the maximum without this impacting the operation for the people," she indicated. "There are many government services that must continue to function perfectly," she was questioned. "Yes, we are still closing many expenses, which said: 'we are more Franciscan here,' expenses have to be reduced, we are reviewing all expenses," she replied. The head of state assured that her government is "very responsible" in managing the budget. "We tighten our belts to the maximum to be able to support the people."
