States and municipalities across the country are seeing their revenues plummet
The evaluator fitch reviews calculate that the Federal participations in states and municipalities be less than 22 thousand 500 million pesoswhich means they are 9.5% below expectations in 2023, slipping with it, a decline for the second consecutive month.
In interview with The Herald of Mexico, Manuel Kintosenior manager of Fitch Ratings Mexico, indicated that after an analysis, he expects that, given the decline in entity revenues, the Income Stabilization Fund for Federative Entities (FEIEF).
However, the FEIEP “was exhausted, it is something that we had not observed in recent history” because, he says, “it does not have sufficient means to correct the decline in local authority income territorial, so it might even be necessary to make budgetary adjustments in the exercise of the expenditure”.
And it is that, taking into account the needs of the States, because of the reduction in resources, the FEIEP It has decreased, in 2019 it had 60 thousand 460 million pesos; in 2020, there were 30,649 million; in 2021 it had 21 thousand 367 million pesos; and in 2022, the balance is 22 thousand 847 million pesos.
He remembered that the FEIEF It exists in Mexico as a mechanism to compensate for declining federal participations due to reductions in the Participating Federal Revenue (RFP).
However, it can only be used to compensate for a reduction in the four
Participating funds: General Participation Fund (20%), Municipal Development Fund (1%), Taxation and Collection Fund (1.25%) and Foreign Trade Fund (0.136%).
Source: El Heraldo De Mexico
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