Mexico unveils 2025 budget proposal that narrows fiscal deficit

Mexico’s government said Friday it will narrow the fiscal deficit next year, even as president Claudia Sheinbaum promises to boost social programs and support the heavily indebted state-owned Petroleos Mexicanos.

The administration would aim for a budget gap equal to 3.9% of gross domestic product by 2025, down from a projected deficit of 5.9% for this year, according to the finance minister’s proposal Rogelio Ramirez de la O presented to Congress. The ministry sees a primary fiscal surplus – which excludes debt payments – of 0.6% of GDP next year from a projected deficit of 1.4% in 2024, according to the plan, which requires lawmakers’ approval.