Home Mexico City Forecasts 7.5% Revenue Increase for 2026 Without New Taxes

Mexico City Forecasts 7.5% Revenue Increase for 2026 Without New Taxes

Share
Share

MEXICO CITY, December 11 – The Mexico City Congress’s Budget and Public Accounts Commission convened a working session with Juan Pablo de Botton Falcón, the Secretary of Administration and Finance, to analyze and discuss the Economic Package for Fiscal Year 2026. This package projects a 7.5% increase in the city’s revenue, reaching an estimated 313.385 billion pesos, up from 291.526 billion approved for 2025, without introducing new taxes.

Legislators Review Economic Package and Prioritize Key Investments

Deputy Valentina Valia Batres Guadarrama (MORENA), president of the commission, emphasized that this accountability exercise provides insight into the content and scope of the capital’s Economic Package. Legislators highlighted several key areas for investment and raised questions regarding budgetary allocations.

Focus on Infrastructure and Social Programs

  • Water Infrastructure: Deputy Gerardo Villanueva Albarrán (Parliamentary Association for Progressive Transformation) underscored the proposed budget increase for water, which aims to improve hydraulic infrastructure. He also inquired about strengthening drainage systems to prevent flooding.
  • Mobility and Environment: These sectors were identified as priorities. Deputy Manuel Talayero Pariente (PVEM) commended a more than 20% increase in the environmental budget, which will support conservation land, green areas, and ecological preservation efforts. He also sought details on strengthening the Ministry of Environment’s capacity and the construction of veterinary clinics.
  • Social Programs: Secretary de Botton Falcón stated that 23.501 billion pesos would be allocated to subsidies and social programs to reduce inequalities.
  • Alcaldía Budgets: A 7.7% budgetary increase for the 16 alcaldías was recognized by Deputy Batres Guadarrama, aiming to strengthen urban infrastructure. The Secretary later confirmed a 7.5% increase for alcaldía budgets.

No New Taxes, Only Adjustments for Inflation

Deputy Pablo Trejo Pérez (PRD) confirmed that the reform to the Fiscal Code does not create new taxes or increase rates. Proposed adjustments only update fees and tariffs in line with inflation. He requested a general overview of Mexico City’s estimated income for 2026 and how these revenues will strengthen public finances, along with an explanation of the main elements of the Green Bond issuance.

Concerns and Questions from Lawmakers

  • C5 and Justice System: Deputy Tania Nanette Larios Pérez (PRI) expressed concern about budget cuts to the C5 and called for increased investment in the Judicial Power and the Attorney General’s Office of Mexico City.
  • 2026 World Cup: Congresswoman Luisa Fernanda Ledesma Alpízar (MC) inquired about the total cost of tax benefits for the 2026 FIFA World Cup. Deputy Andrés Atayde Rubiolo (PAN) questioned the absence of the World Cup’s economic impact in the Revenue Law. Secretary de Botton Falcón noted that investment projects related to the World Cup would provide permanent benefits, citing the acquisition of 17 new light rail trains to improve connectivity.
  • Pedestrian and Cycling Infrastructure: Ledesma Alpízar also requested details on the roadmap for budgeting pedestrian and cycling infrastructure to meet emission reduction goals and reorganize mobility.
  • Public Investment in Infrastructure: Legislator Miriam Saldaña Cháirez (PT) emphasized the importance of infrastructure investment for economic and social development, creating jobs and demonstrating responsible resource management. She asked for clarification on strengthening public investment in infrastructure without neglecting conservation land.
  • Revenue Law Realism: Deputy Atayde Rubiolo (PAN) argued that the proposed Revenue Law was unrealistic, citing an average underestimation of 16% in recent years. He proposed that surplus revenue be returned to families and businesses, and that 100% of the increase approved by Congress be allocated to infrastructure.

Prudence and Austerity in Spending

Juan Pablo de Botton Falcón, Secretary of Administration and Finance, stated that the Economic Package proposes prudence and austerity in spending, efficiency in financial management, and strengthening income to boost economic growth and investment in the city. He highlighted that the city aims to reduce debt by 0.5% in real terms in 2026, ensuring healthy public finances.

Secretary de Botton Falcón concluded that the 2026 budget focuses on permanent investment, sustainability, combating inequalities, and the care system, all while maintaining healthy and sustainable public finances to ensure Mexico City remains a leading global city.

Source: https://www.congresocdmx.gob.mx/comsoc-estiman-incremento-ingresos-7-5-por-ciento-cdmx-2026-6932-1.html

Share
Related Articles
A vibrant celebration of Mexican Independence Day, featuring a crowd waving Mexican flags, fireworks in the night sky, and traditional papel picado banners, festive and colorful.
Culture & TraditionsTraditions

Celebrating Mexican Independence Day

Mexican Independence Day is a major national celebration that marks Mexico’s break...

Vibrant Mexican artisan market, colorful textiles, traditional pottery, detailed handmade crafts, bustling atmosphere, warm sunlight, cultural heritage.
Art & CraftsCulture & TraditionsTraditions

What Defines Mexican Artisan Culture?

Mexican artisan culture is a bright, detailed tapestry built from centuries of...

Colorful Mexican folk crafts, including alebrijes and Huichol art, arranged on a rustic wooden table, vibrant and detailed, traditional style.
Art & CraftsCulture & TraditionsTraditions

Folk Crafts of Mexico

The folk crafts of Mexico, called artesanía, form a bright, living mix...

Mexican Day of the Dead altar with marigolds, candles, and sugar skulls, vibrant colors, traditional, cultural celebration.
Culture & TraditionsTraditions

Mexican Rituals and Ceremonies

Mexican rituals and ceremonies come from a long mix of Indigenous roots,...

whysomexico.com
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.