Politics Economy Country 2025-12-03T01:37:20+00:00

Mexican Congress Deadlocked Over 2025 Budget Amid Debt and Tax Disputes

The government of Nuevo León presented its 2025 budget proposal but failed to reach a consensus with the local Congress on key issues, including a 14 billion peso debt and an increase in the Payroll Tax (ISN). The business community and opposition parties have voiced their disagreement, delaying the budget's approval.


Mexican Congress Deadlocked Over 2025 Budget Amid Debt and Tax Disputes

The Secretary of Government, Miguel Flores Serna, announced that after presenting the budget to the Official Part, he does not plan to submit a different initiative and is awaiting a counter-proposal from the local Congress. "We also do not agree that it be imposed without consensus and coordination," said Soto Esquer. Regarding the debt, he assured that it will not be approved with the 14 billion in financing requested. "We are waiting for a counter-proposal from the Legislature, we have already presented our proposal and we want to hear from them to build the budget together," he added. The PAN's coordinator of deputies, Carlos de la Fuente, highlighted the state government's willingness to break down the 21 billion pesos in expenses on infrastructure, including 11 billion in debt; the Executive branch explained that the majority is for the Metro Rey lines. "We asked them to tell us what the 21 billion pesos in investments consisted of, they told us that they were mainly the Metro lines, bus leasing, the Water Park, the Municipal Development Fund, and other items... but we are still at the same point, they opened the information to us, but we are left with the doubt that we do not see an austerity policy, they simply want more money for the central government and they want to make the investment with debt and the increase in the ISN," said De la Fuente. Regarding the increase in the Payroll Tax that has created tension with the business community, the PAN coordinator criticized MC for the use of these resources but also the business community, assuring that their complaints "have no arguments." "We tell the Private Sector to provide us with their arguments, they just call us saying it's impossible, in the call they say they disagree and I tell them that is not enough, solid arguments on the impact on the business sector are required," he added. In this sense, the 4T took advantage of the distance between the IP and the other political forces, and the Morena coordinator, Mario Soto, announced that he will be meeting with several deputies and business chambers. Within the faction, some actors are divided, between those who seek to reduce it to an average of 6 billion and others who prefer to be more critical of "zero debt." "The message is clear, we are totally disposed... I think there is time, the optimal thing is that it comes out as soon as possible, but the year has been skipped, although I hope it is not so," said the official. The PRI-PAN set December 17 as the deadline for negotiations and in the Palace of Cantera they consider that the approval of the Fiscal Package would not occur until 2026, although it would complicate the increase in taxes such as the ISN or various commercial licenses.