Politics Economy Country 2025-11-14T01:21:42+00:00

Political Crisis Over State Debt in Mexico

The governor of Nuevo León presented a borrowing plan for 16.1 billion pesos, sparking sharp criticism from the opposition. Politicians accuse the executive branch of creating an excessive debt burden for 25 years and opening new fronts in the political landscape.


Political Crisis Over State Debt in Mexico

The legislator said: "They want to undertake a large amount of work, to be paid over the next 25 years." The most regrettable thing is that of the 19.2 billion pesos in investment, 13.7 billion is public debt. Following a private meeting with Treasurer Carlos Garza; the Secretary of Government, Miguel Flores, as well as local deputies from all caucuses, the Executive branch presented its proposal for a debt of 16.1 billion pesos, a situation the opposition seeks to negotiate, which opened new fronts in the 4T. According to legislators, the state government's proposal is over 10 billion for mobility infrastructure, over 3 billion for general works, and 2.4 billion for the state-owned water and drainage company, Agua y Drenaje. The coordinator of PAN deputies, Carlos de la Fuente, stated that the debt request was excessive and commits the state for the next 25 years. There are exaggerated things like the 16.1 billion peso debt after last year's 10.2. We made that known, declared the PRI leader. From MC, they suggest these figures are a ceiling for indebtedness and they hope to adjust it to an amount similar to last year's. However, the party's coordinator in Congress, Mario Soto, remained at the meeting and decided not to issue a statement on the matter. It was learned that this results from a previous meeting with the national leader of Morena, Luisa Alcalde. However, they will conduct final negotiations regarding the governor's urgency with the Judicial Reform from the court, and other instances that do not convince the PRI-PAN. Where divisive fronts opened was in the 4T. 15 minutes after the meeting began, legislator Jesús Elizondo came out to state that from Morena not a single peso of the debt will be approved. He also pointed out that this year's spending was based on 2025 financing and requested a focus on current projects. It's an initial meeting, we are willing to listen... We will carry on different talks... it's a lot of debt to start with, we would have to analyze what's yes and what's no. We are proposing that we will have to watch for a municipalist budget, resources for all the mayors, resources to face the different crises. The governor opened too many fronts, he didn't focus on the Metro lines. For Metrorrey alone they are asking for 10 billion for next year, he added. PRI announced they will hold marathon meetings at the start of next week to iron out details and have the Budget Package adjusted. This in response to MC's stance on the 2026 Budget in San Lázaro. They want to do everything with debt. "They presented the numbers openly to us," stated the PRI coordinator, Heriberto Treviño: "It's just a letter to Santa Claus... and it's too much debt." It could hover between 6 and 8 billion in talks with PRI-PAN. Additionally, the opposition also shows calmness with the increase in municipal shares, collection methods such as alcohol licenses, and other favorable points. She held her ground against MC and motivated some deputies to be firm on financing; but some 4T deputies—with some affinity to Palacio de Cantera—will wait for the negotiation results to state their position. It's understandable: The governor maintains agreements with the Ministry of the Interior, through direct communication with César Yáñez, which are inescapable for some deputies who are part of these negotiations. But Alcalde Luján was clear in her meeting: "I don't want votes in abstention, it's going against indebtedness." "They present their letter to Santa Claus, we see what benefits the State."

Latest news

See all news