Mexico City, January 28 – The Secretariat of Administration and Finance (SAF) of Mexico City has submitted its Quarterly Progress Report for January-December 2025, fulfilling the mandates of the Political Constitution of Mexico City and Article 153 of the Law on Austerity, Transparency in Remunerations, Benefits, and Exercise of Mexico City. The report, delivered under the instructions of Head of Government Clara Marina Brugada Molina, highlights robust financial performance and a commitment to sustainable public finances.
Total Income Surpasses Expectations with 8.5% Growth
Preliminary figures for the fourth quarter of 2025 indicate that total income reached 334,327.6 million pesos, marking an impressive 8.5% annual growth. This figure also represents a 14.7% increase compared to the amount approved in the Mexico City Revenue Law for fiscal year 2025 (LICDMX 2025).
A significant driver of this growth was the 21.7% annual increase in local income, which are revenues collected by Mexico City itself, totaling 150,635.2 million pesos. Conversely, federal income amounted to 157,063.4 million pesos, experiencing a slight annual decrease of 1.5%. Within local revenues, tributary income saw a substantial 24.9% increase compared to the previous year, fueled by a 37.5% annual rise in payroll tax collection and a 21.8% annual increase in property tax collection.
Net Expenditure Aligned with Increased Revenues
The total net expenditure, including both exercised and committed funds, reached 318,165.2 million pesos, aligning with the higher-than-expected revenues. Programmable expenditure accounted for 301,628.4 million pesos, showing a 3.1% growth compared to the 2024 budget. Non-programmable expenditure stood at 16,536.8 million pesos. Public investment also saw a healthy increase of 9.5% compared to 2024. Notably, public investment funded by local resources in Mexico City grew by 24.9% annually, reaching a preliminary amount of 50,354.8 million pesos.
Fiscal Benefits and Record-Breaking Permanent Licenses
In 2025, the city recorded 4,778,323 fiscal benefits. Among these, 2,742,116 benefits were granted for property tax payments, and 1,225,992 benefits were related to vehicle ownership subsidies. Additionally, approximately 90% of micro and small businesses contributing to the payroll tax received fiscal benefits. 2025 marked a historic year for Mexico City with the highest number of Permanent Licenses issued, totaling 1,407,665. By the end of the year, the new Permanent License program accumulated 1,620,864 issued licenses, exceeding the initial estimate of one million, demonstrating high public acceptance. The average processing time for license issuance at treasuries and service centers was reduced by 40%, despite a fourfold increase in demand compared to the months preceding its implementation.
Public Debt Reduced, Credit Ratings Maintained
By the close of 2025, Mexico City’s public debt balance was 107,263.6 million pesos, representing a real debt reduction of 0.6% compared to the end of 2024. The Government of Mexico City continues to adhere to a debt policy that promotes healthy, sustainable, and sustained public finances. Financing is allocated to productive investment projects aimed at improving citizens’ quality of life, while consistently preserving debt sustainability. This commitment is reflected in the city’s public debt ratings.
In 2025, Mexico City’s public debt was reaffirmed with the highest state-level ratings by international rating agencies: in August, Moody’s ratified Mexico City’s long-term debt rating at AAA.mx; in November, Fitch affirmed Mexico City’s rating at ‘AAA(mex)’ with a stable outlook; and in December, HR Ratings ratified the HR AAA rating, also with a stable outlook.
Successful Green Bond Issuance
The issuance of Mexico City’s green bond in 2025 represents the largest labeled issuance in the capital’s history. These funds are designated for strategic investment projects that aim to foster a cleaner, greener, and more sustainable city. The issuance garnered demand twice the target amount, with bids exceeding 6 billion pesos for a targeted financing of 3 billion pesos. This outcome underscores investor confidence in Mexico City’s public finances and investment projects.
Source: Secretariat of Administration and Finance (SAF) of Mexico City
