- 📊 2027 budget’s “five pillars”: Finance Minister Édgar Amador Zamora outlined the proposed 10.5-trillion-peso ($621-billion USD) 2027 budget’s five pillars, namely economic growth, protecting government priorities, strengthening revenue, more efficient spending and fiscal discipline. He highlighted that the budget deficit is projected to fall to 3.9% of GDP in 2027 from 4.1% this year.
- 🚫 “No new taxes,” Sheinbaum insists: The president said the budget doesn’t include new taxes or fuel price hikes (gasolinazos), stressing the focus is instead on combating tax evasion by people who “should pay taxes, but don’t.”
- 📈 Sheinbaum optimistic on growth: While the official 2027 economic growth forecast is 1.5%-2.5%, Sheinbaum said stronger growth is possible given pending public and public-private investment projects. She also cited anticipated “greater stability” in trade relations with the U.S. and Canada as a potential growth accelerator.
President Claudia Sheinbaum held her Wednesday morning press conference a day after Finance Minister Édgar Amador Zamora submitted the government’s 2027 budget proposal to federal Congress. The draft “economic package” proposes public spending of some 10.5 trillion pesos (US $621 billion) next year.
The mañanera was significant as Amador spoke about the budget proposal’s “five pillars.” In doing so, he outlined where the government’s priorities lie.
Minister Amador said there will be greater “efficiency” in tax collection, but stressed that taxes won’t go up in 2027. (Saúl López Escorcia/Presidencia)For her part, Sheinbaum stressed that the government isn’t proposing any new taxes, but is aiming to combat tax evasion. She also said that her administration is optimistic about Mexico’s economic growth potential, in part because it anticipates “greater stability” in the trade relationship with the United States.
On July 1, the U.S. government announced that it had declined to renew the USMCA free trade pact in “its current form”, but U.S. officials continue to engage with their Mexican counterparts on trade issues. Sheinbaum and Economy Minister Marcelo Ebrard are scheduled to speak with U.S. Commerce Secretary Howard Lutnick in a video call on Wednesday.
One of Mexico’s central aims in its bilateral trade talks with the United States is to secure a reduction in U.S. tariffs on Mexican vehicles, steel and aluminum.
The 5 pillars of the federal government’s proposed 2027 budgetAmador told reporters that the 2027 budget proposal has “five pillars.”
They are:
- Economic growth.
- The protection of government priorities.
- The “strengthening” of government income.
- More efficient spending.
- Fiscal discipline.
Amador said the proposed 2027 economic package “protects the well-being of families, promotes development and maintains a trajectory of healthy public finances through these five pillars.”
He said the government is targeting economic growth above 2%, but noted that the forecast for next year is an economic expansion in the range of 1.5%-2.5%.
Amador said that the draft budget protects government priorities, including welfare programs and “public investment.”
The finance minister pledged that the government will “strengthen” its revenue, including by combating tax evasion. He said there will be greater “efficiency” in tax collection, but stressed that taxes won’t go up.
Amador also said that the government is committed to “more efficient spending.”
“Republican austerity measures are moving forward,” he said.
Regarding fiscal discipline, Amador said there will be a “gradual” and “responsible” reduction of the public sector deficit. The deficit is projected to fall to 3.9% of GDP in 2027 from 4.1% of GDP this year.
Sheinbaum: ‘There are no new taxes, that’s the first thing’OECD cuts Mexico’s 2026 growth forecast but sees a brighter 2027
Sheinbaum stressed that the government didn’t propose any new taxes in its budget proposal.
“There are no new taxes, that’s the first thing,” she said.
“There are not going to be new taxes. Nor are there going to be gasolinazos,” Sheinbaum said, using a colloquial word for steep hikes to fuel prices.
What is set out in the proposed budget, she said, are “measures” to combat tax evasion.
“Tax evasion still exists,” Sheinbaum said. “What does that mean? [There are] people who should pay taxes, but don’t.”
Sheinbaum subsequently told reporters that the budget proposal maintains “all the incentives for new investment,” including those offered in the context of Plan Mexico, the government’s ambitious economic initiative.
Sheinbaum expresses optimism about Mexico’s potential for economic growthSheinbaum noted that the Finance Ministry is forecasting growth in the range of 1.5%-2.5% in 2027.
“Let’s see if we grow more,” she said.
Sheinbaum said that higher-than-anticipated growth next year is “possible” because the economic impact of “a lot” of proposed public and public-private investment projects will be felt next year.
“Our idea is that [the economy] could grow more,” she said.
Sheinbaum also said that her government anticipates “greater stability” and “greater certainty” in the trade relationship between Mexico and its USMCA partners, namely the United States and Canada.
She said that the government also anticipates an increase in private investment next year.
“We’re going to wait and see how 2027 turns out and then we’ll make an assessment for 2028,” Sheinbaum said.
“We’re optimistic about what will happen in 2027 and we’re also very satisfied with the [proposed] economic package,” she said.
By Mexico News Daily chief staff writer Peter Davies (peter.davies@mexiconewsdaily.com)
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