According to the information presented by the Ministry of Finance and Public Credit (SHCP), spending on contributory pensions absorbed, during 2023, greater public budget resources that the financial cost of debt and equity to states and municipalities.
During last year and being the penultimate year of the government of Andrés Manuel López Obrador (AMLO)they were spent 1 billion 302,736 million pesos for the increase in pension and retirement payments, which represented an increase of 4.5 percent in annual comparison.
This meant that, last year, of every 100 pesos of the 8.1 billion pesos that the government spent a total of 16 pesos that were allocated to payment of pensions and retirements.
This pension expense has increased gradually year after year, which represents one of the big budget pressures given the projection that, during the following years, the Mexican population will become older, so the pressure will increase.
According to Mexico Evalúa estimates, from 2018 to 2024 alone, a contributory pension expense will increase 1.1 points of the Gross Domestic Product, while total income would increase 0.2 points of GDP, thus reducing the fiscal space available to the federal government.
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