THINKING

MEXICO: 2023 DRAFT ECONOMIC PACKAGE

The Secretariat of Finance and Public Credit (SHCP) delivered to the Congress of the Union the 2023 Economic Package, consisting of the General Economic Policy Criteria bill, the Federal Revenue Law bill, and the Budget of Expenditures of the Federation bill.

With this in mind, Ágora Mexico has drawn up a document with the most relevant points of the Package, which can be consulted here:

The 2023 Economic Package was delivered this Thursday 8 September by the Secretariat of Finance and Public Credit (SHCP) to the Congress of the Union for debate and subsequent approval.

Until the deadline of 15 November the Chamber of Deputies will have the exclusive authority to approve, analyze, debate and modify where necessary the Federal Executive’s proposal.

The Economic Package is made up of three bills:

  • General Economic Policy Criteria (CGPE).

  • Federal Revenue Law (LIF).

  • Budget of Expenditures of the Federation (PEF).

To provide legal certainty and promote Direct Foreign Investment (DFI), on this occasion the Tax Administration Service (SAT) and the Secretariat of Finance and Public Credit have not submitted periodic amendments to the respective tax laws (VAT, income tax, duty (known as IEPS)), or the Fiscal Code of the Federation for the coming year.

Opposition political groups expect to give their support to a budget that prioritizes security, health and economic growth. One of the government’s focus points in 2022 in the Budget of Expenditures were the Federal Executive’s flagship social programs.

One of the major challenges will be the forecasted 2.4% GDP growth, higher inflation than Bank of Mexico (Banxico) targets, crude oil price estimates, increased costs of priority public works for the federal government, and the austerity and discipline provisions to be observed by agencies and entities.