Public finances are “solid”: SHCP; tax revenue grows 14.2% in April

Between January and April, total net spending reached two billion 294 thousand 092.6 million pesos, an amount similar to that registered in the same period of the previous year in constant pesos, but less than what was foreseen in the program by 100 thousand 644.6 million pesos. .

Mexico City, May 30 (However).- The Ministry of Finance and Public Credit (SHCP) reported on Monday that in the period from January to April, the public sector budget revenue reached the two billion 274 thousand 411.7 million pesos, an amount higher by 114 thousand 913.7 million pesos than what was foreseen in the program and by 5.9 percent per year in real terms.

“In the index accumulated to April, oil revenues registered a positive performance, standing above the scheduled figure of 44 thousand 961.6 million pesos, driven upwards by the increase in the international price of crude oil. In its real annual comparison, said item was higher by 42.7 percent in real terms compared to the first four months of the previous year”, he detailed.

In addition, he pointed out that tax revenues remained above the approved amount at 39 thousand 775.7 million pesos and registered an annual increase of 4.5 percent in real terms compared to the first quarter of 2021. Without considering the IEPS on fuels, the collection accumulated to April exceeded the approved amount by 109 thousand 793.4 million pesos.

“Within the collection, the ISR for January-April stood at 112 thousand 308.9 million pesos above the program and registered a real annual increase of 17.7 percent. Meanwhile, the VAT presented a fall of 3.8 percent in real terms and a lower collection of 20 thousand 988.5 million pesos during the same period; however, its collection was only five percent below the program,” he added.

Between January and April, total net spending reached two billion 294 thousand 92.6 million pesos, an amount similar to that registered in the same period of the previous year in constant pesos, but less than what was foreseen in the program by 100 thousand 644.6 million pesos. . Photo: Cuartoscuro

He also pointed out that during the months of January to April, non-tax revenues were located at 110 thousand 835.2 million pesos, an amount higher than the forecast in 23 thousand 908.4 million pesos, but lower by 38.8 percent annually in real terms in compared to what was observed in the same period of the previous year.

Between January and April, total net spending reached two billion 294 thousand 92.6 million pesos, an amount similar to that registered in the same period of the previous year in constant pesos, but less than what was foreseen in the program by 100 thousand 644.6 million pesos. .

Regarding the programmable component of spending, during January-April of this year, it amounted to one billion 683 thousand 953.5 million pesos, registering a real annual decrease of 2.6 percent in real terms.

“As of April, the non-programmable expense reached 610 thousand 139.2 million pesos, a figure lower than the scheduled one thousand 58.5 million pesos, where the items of financial cost and Adefas and others stand out, which registered a lower expense compared to with the forecast at 40 thousand 324.6 million pesos. On the other hand, the contributions to the states and municipalities were higher by 39 thousand 266.1 million pesos due to the favorable evolution of the collection”, he added.

During the indicated stage, the economic balance registered a deficit of 13 thousand 40.9 million pesos, a figure that compares favorably with the deficit foreseen in the program of 235 thousand 39.2 million pesos and with the data observed in January-April 2021. The primary balance, for its part, reached a surplus of 182 thousand 770.4 million pesos compared to the expected deficit of 33 thousand 634.6 million pesos. For its part, the Financial Requirements of the Public Sector (RFSP) were located at 54 thousand 539.6 million pesos.

The net debt of the Federal Government stood at 10 trillion 505 billion pesos. 78.1 percent is denominated in national currency and 76.5 percent of government securities are fixed-rate and long-term.

Regarding the programmable component of spending, during January-April of this year, it amounted to one billion 683 thousand 953.5 million pesos, registering a real annual decrease of 2.6 percent in real terms. Photo: Cuartoscuro.

The Historical Balance of the Financial Requirements of the Public Sector (SHRFSP) amounted to 13 trillion 125.3 billion pesos, while the net debt of the public sector stood at 13 trillion 82.7 billion pesos.

Regarding the refinancing operations in the domestic market, on April 27, a cross-swap of government securities was executed in that market. The operation consisted of withdrawing M Bonds and Udibonos maturing between 2022 and 2029 for more than 82 billion pesos; and, subsequently, a placement of Cetes, Bonos M and Udibonos with maturities between 2023 and 2047 was made, for an amount of more than 87 billion pesos.

The total demand for the operation amounted to more than 128 billion pesos. The transaction allowed:

-Optimize the maturity profile of the Federal Government’s debt portfolio.
-That debt holders recalibrate their portfolios in response to the current conditions of monetary policy and inflation.
-Contribute to preserving the proper functioning of the local debt market.

In recognition of the conduct of public debt, the Government of Mexico received on April 25 the “Bono Nicho de Mercado” award granted by IFR magazine, within the framework of the operation carried out in 2021 in the Formosa market. The last time Mexico obtained this recognition was in 2010.

In line with the development of a sustainable debt market, on May 2, the Ministry of Finance issued the BONDESG, the first sustainable sovereign bond in pesos in the local market, with the participation of 35 national investors and a total demand higher in 3.2 times of the amount placed.