Federal Government plans to transfer 0.5% more resources to state governments in 2024: IBD

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For 2024, a greater Federalized Expenditure is projected by 0.5% in real terms compared to 2023, to reach 2 billion 563,301.0 million pesos (mdp), an aspect that is reflected in greater budgetary resources assigned, mainly, to Branch 33 Federal Contributions, to Branch 25 Forecasts for Education Systems and Decentralization Agreements, according to a report from the General Directorate of Finance of the Belisario DomĂ­nguez Institute (IBD).

The “Analysis of the federal resources identified for the federal entities in the Draft Expenditure Budget of the Federation 2024”, prepared by the researcher Vladimir Herrera González, observes that 19 federal entities present annual growth in their Federalized Expenditure with respect to the budget approved in 2023.

The increases in Mexico City (30.4%), Baja California Sur (5.1%), Querétaro (3.1%), Quintana Roo (3.0%) stand out. For their part, 13 states report falls among which stand out: Campeche (-4.2%), Guanajuato (-3.3%), Zacatecas (-2.5%%) and Tabasco (-1.6%).

In relation to Programs Subject to Operating and Specific Rules, other than Federalized Expenditure, whose resources are exercised by the Federal Government in the federal entities, a growth of 13.8% is observed compared to 2023, the report indicates.

On the other hand, it points out that the budget allocated to Investment Programs and Projects (PPIs) presents a decrease of 36.6% compared to 2023 with budget drops for the 32 federal entities, which leads to a decrease in resources for the development of PPIs in the 32 federal entities, among which stand out: Sinaloa (-31.2%), Coahuila (-28.3%), Aguascalientes (-27.5%), Veracruz (-27.5%), Querétaro (-26.4%) and Baja California Sur (- 24.5%).

The Federation Expenditure Budget must be approved by the Chamber of Deputies no later than November 15.

The complete IBD study can be consulted at the following address: http://bibliodigitalibd.senado.gob.mx/handle/123456789/6079

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