Politics Economy Country 2025-12-13T05:47:58+00:00

Political Negotiations and Budget Disputes in Nuevo León

Active negotiations are underway in Nuevo León between the government and the opposition over the 2025 budget. Key issues include infrastructure financing, transparency reform, and resource redistribution. A preliminary agreement is expected next week.


Political Negotiations and Budget Disputes in Nuevo León

The leaders of the PRI and PAN are now in much better relations with Eduardo Ortegon than with Juan Ignacio Barragan. The new head of the department stated that the delays in the works were caused by his predecessor not even having tendered the financing approved for 2025. The rejection of the ISN (Income Tax) hike has become clear to the public, business circles, the opposition, and even the MC movement after the recent statement by the Secretary of Government, Miguel Flores. Negotiations between Palacio de Cantera and the opposition in the Congress have begun. A pre-agreement is being discussed, which could be finalized next week. As central issues, the ISN hike is ruled out, and a loan of 8,000 million pesos for infrastructure—identical to the 2025 budget—is being considered. Additionally, matters such as autonomous bodies will be adjusted, with all this planned to be settled by the weekend. According to LPO, despite the controversy with business leaders throughout the week, negotiations have not ceased since December. The opposition is willing to concede 8,000 million pesos in financing and is considering increasing it to 10,000 million through debt for Water and Drainage. Palacio de Cantera would give up the 6,000 million pesos in revenue. The opposition, in turn, points to redistributing the central government's resources. One option for the opposition is for the transparency body to function as a decentralized entity within the local Congress. Morena is once again not participating in the resource negotiations. There are talks about securing the requested funds for the department in 2026 in exchange for advancing the Transparency Reform, which is set to take effect in 2027. The 24% increase for executive branches is a genuine proposal from the PRI, and they will reduce the overall budget and redistribute resources, for instance, from the Secretariat of Equality and Inclusion to the Civil Force—where the ISN hike was initially planned. Furthermore, more funds are being discussed for autonomous bodies and opposition-led municipalities, and progress has been made on pending payments to PRI-PAN mayors. A key point for the PAN is the preservation of INFO NL. At this stage, the faction is considering two options: either vote against as a significant opposition or maintain unanimity and not disrupt political agreements that extend beyond Nuevo León. It is estimated that the opposition's 'counter-proposal' will be submitted by December 15 at the latest, with implementation between December 17 and 19 to avoid reading the report and a marathon session, as seen at the beginning of 2025.

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