Overview

• Public debt fell from 51.3% of GDP at the end of 2024 to 49.2% by May 2025 under Sheinbaum’s austerity framework.
• The “austeridad republicana” preserves health and education funding while targeting excess operational spending and corruption.
• Historic-high tax collections are financing government operations and reducing reliance on new borrowing.
• An initiative to reform public procurement and public works laws seeks to streamline budget execution and close loopholes for waste.
• New infrastructure lines such as the Tren México-Querétaro and Tren México-Pachuca are proceeding under stricter fiscal discipline.