Federalized spending paid grows in most states of the country

In a context of economic reactivation, but also of an inflationary rise, at the end of September 2022 the federalized expense paid grew for most of the states.

According to the Center for Public Finance Studies (CEFP) of the Chamber of Deputies, 26 states in the country had higher federal transfers compared to the first nine months of 2021.

The largest increases were registered in Zacatecas, going from 21,562.3 million pesos paid in January-September 2021 to 25,724.3 million in the same period of 2022, which meant a real increase of 10.6%, followed by Oaxaca, which went from 56,590.6 million to 67,017.8 million (9.8% more).

Four entities stand out with increases greater than 6% real: Guanajuato, Hidalgo, Yucatán, State of Mexico and Sonora.

Of the states with real falls, Veracruz and Mexico City stand out with -6.8% and -4.0%, respectively; however, in nominal terms there are increases of 516.0 million pesos and 5,100.5 million, each.

The CEFP analysis specified that the increase in federalized spending paid for subnationals was driven by an improvement in federal contributions paid, since they show a “positive” annual behavior.

“The annual increase in total participations in relation to 2021 is the result, fundamentally, of the higher federal collection that can be participated in the third quarter of 2022 compared to what was collected in the same period of the previous year (91,750.3 million pesos),” the analysis deepened. .

As of the third quarter of this year, 27 states had increases in the category of paid participations, Oaxaca with the highest growth of 31.1%, followed by Zacatecas with a positive variation of 22.3%; the third best growth of the period was obtained by Guanajuato, with 17.9% real.

Regarding the decreases in participations, the most outstanding correspond to Campeche and Veracruz, with a reduction in their resources of 252.2 million pesos (-10.7%) and 1,109.0 million (-9.4%), respectively.

Meanwhile, the contributions paid presented a variable behavior, slightly more than half of the entities achieved increases when compared to the same period of the previous year.

The greatest increase was in Quintana Roo (5.6%) and the most pronounced real fall was in Veracruz, with a real decrease of 3.0 percent.

Behaviour

At the end of the third quarter of 2022, the federalized spending paid was made up of 1.63 trillion pesos, higher than the same period in 2021, with a real increase of 3.1%; figure that in nominal terms corresponds to a growth of 164,391.9 million.

It must be remembered that the federalized expenditure paid is made up of Branch 28 shares, Branch 33 federal contributions, Decentralization and Reassignment Agreements, Public Health and the federalized resources of Branch 23 (wage and economic provisions).

The concepts with the greatest resources were those transferred to local governments via federal participations and contributions; Branch 28 represented 50.5% of total federalized spending, followed by Branch 33, whose budget accounted for 38.9 percent.

estados@eleconomista.mx