Where does Mexico’s public deficit come from?
A state that levies little and has lost its oil rent: Mexican public revenue and spending since 2003, rising pensions and interest, and a comparison with France.
Scope: Mexican general government (federal government, states, municipalities, social security), national accounts, calendar years, OECD data. Public enterprises (Pemex, CFE) are not included. · Data as of Oct 30, 2026.
Key takeaways
- In 2024, Mexican general government spent MX$9,780bn (29.2% of GDP) against MX$7,675bn of revenue (22.9%): a deficit of MX$2,105bn, or 6.3% of GDP, the highest since 2003 after 2020 (6.5%). Gross debt stands at 62.3% of GDP on the OECD definition.
- A state that levies little: public revenue is only 22.9% of GDP, less than half the French level. Social contributions bring in only 2.0% of GDP, income tax 8.0% and VAT 4.2%.
- The end of the oil rent: rents collected by the state, mostly oil duties and royalties, fell from 7.0% of GDP in 2008 to 0.7% in 2024. Income tax took over (from 5.0% to 8.0% of GDP) without fully making up for it.
- Between 2008 and 2024 the deficit went from 0.9% to 6.3% of GDP. Spending gained +5.2 points: cash social benefits (+2.6, from 1.6% to 4.2% of GDP), other transfers (+2.4), interest (+1.5) and operating purchases (+1.1), partly offset by lower subsidies (−1.8). Revenue fell by 0.2 point: the fall in other revenue, oil first (−5.6), wiped out the rise in taxes.
- Pensions rising fast: according to the OECD, public pension spending rose from 1.0% of GDP in 2005 to 5.3% in 2023, while people aged 65+ make up only 8.2% of the population. Interest on debt costs 3.6% of GDP in 2024 (2.1% in 2008). The deficit sits with the federal government (−7.0% of GDP in 2024).
- Compared with France, Mexico spent 27.8 points of GDP less in 2024 (29.2% against 57.0%) and levied 28.3 points less. The gap comes mostly from cash social benefits (−15.0 points) and social contributions (−14.4 points); Mexico pays more interest, though (+1.6 points).
Revenue and spending, year by year
For each year: left bar = revenue (grey), right bar = spending (colours), stacked by type. The gap between the two bars is the deficit. Tap an item in the legend to isolate it. Amounts in billions of pesos. Mexico does not report spending by function: it is shown by nature. It records no purchased benefits in kind, public healthcare being produced directly (wages, purchases).
What widened (or narrowed) the deficit
Change of each item in points of GDP between two years, spending by nature. Spending that rises, or revenue that falls, widens the deficit (bar to the left); revenue that rises narrows it.
Public balance: −0.9% of GDP in 2008, −6.3% in 2024, a change of −5.4 points. Contribution of spending: −5.2 pt; of revenue: −0.2 pt.
- Cash benefits (pensions, allowances)
- Purchased benefits in kind (reimbursed care…)
- Public employee compensation
- Operating purchases
- Interest on debt
- Subsidies
- Investment
- Other transfers
- Revenue
Detail by item · 2008 → 2024
| Detail by item | Side | 2008 | 2024 | Change (pt) | Effect on balance (pt) |
|---|---|---|---|---|---|
| Other revenue (sales, property income, transfers) | Revenue | 10.73 | 5.16 | −5.57 | −5.57 |
| Cash benefits (pensions, allowances) | Spending | 1.61 | 4.18 | +2.57 | −2.57 |
| Other transfers | Spending | 5.30 | 7.67 | +2.36 | −2.36 |
| Interest on debt | Spending | 2.14 | 3.60 | +1.46 | −1.46 |
| Operating purchases | Spending | 2.40 | 3.46 | +1.06 | −1.06 |
| Other current taxes (wealth…) | Revenue | 0.62 | 0.13 | −0.48 | −0.48 |
| Public employee compensation | Spending | 7.83 | 8.09 | +0.26 | −0.26 |
| Capital taxes (inheritance…) | Revenue | 0.02 | 0.01 | −0.01 | −0.01 |
| Social contributions | Revenue | 1.60 | 2.04 | +0.44 | +0.44 |
| VAT (IVA) | Revenue | 3.63 | 4.20 | +0.57 | +0.57 |
| Investment | Spending | 2.56 | 1.88 | −0.69 | +0.69 |
| Subsidies | Spending | 2.15 | 0.32 | −1.83 | +1.83 |
| Other taxes on production (IEPS excise on fuel, alcohol, tobacco…) | Revenue | 1.50 | 3.35 | +1.86 | +1.86 |
| Taxes on income and profits (households and companies) | Revenue | 5.01 | 8.01 | +3.00 | +3.00 |
| Total revenue | Revenue | 23.11 | 22.90 | −0.20 | −0.20 |
| Total spending | Spending | 23.99 | 29.19 | +5.20 | −5.20 |
| Balance | Balance | -0.88 | -6.28 | −5.40 | −5.40 |
The drivers
The oil rent
Rents collected by general government (mostly oil duties and royalties), % of GDP.
- Rents · 0.7% (2024)
Pensions and health
Public spending on pensions (old age + survivors) and health, % of GDP, OECD social expenditure database (SOCX).
- Pensions · 5.3% (2023)
- Health · 3.0% (2023)
The demographic driver
Share of people aged 65 and over (%), World Bank.
- Aged 65+ · 8.2% (2024)
Public balance
% of GDP. Negative = deficit. Before 2003: IMF World Economic Outlook.
- Balance · −6.3% (2024)
Gross debt and net financial worth
% of GDP, OECD.
- Gross debt · 62.3% (2024)
- Net financial worth · −44.8% (2024)
Who carries the deficit?
Balance by level of government, % of GDP.
- Federal government · −7.0% (2024)
- States · 0.3% (2024)
- Municipalities · 0.1% (2024)
- Social security · 0.4% (2024)
Mexico and France
Same OECD accounts for both countries, same scope (general government), in % of GDP; OECD gross debt for both. With no spending by function for Mexico, spending is compared by nature. To the right of a gap chart, Mexico is above France.
Public spending, % of GDP
- Mexico · 29.2% (2024)
- France · 57.3% (2025)
Public revenue, % of GDP
- Mexico · 22.9% (2024)
- France · 52.2% (2025)
Public balance, % of GDP
- Mexico · −6.3% (2024)
- France · −5.1% (2025)
Gross public debt, % of GDP
- Mexico · 62.3% (2024)
- France · 116.2% (2025)
Structure of revenue
One bar per country, stacked by type of revenue, % of GDP.
- Social contributions
- Taxes on income and profits
- VAT
- Other taxes on production
- Other revenue
Where Mexico levies more (or less) than France
Mexico minus France, in points of GDP, same year. To the right, Mexico is higher.
- Mexico − France · 2024
Spending by nature
What public money pays for: wages, benefits, purchases, investment… France pays far more social benefits.
- Cash benefits (pensions, allowances)
- Purchased benefits in kind (reimbursed care…)
- Public employee compensation
- Operating purchases
- Interest on debt
- Subsidies
- Investment
- Other transfers
Mexico − France gap by type of spending, points of GDP
- Mexico − France · 2024
Yearly data
Show the table of revenue, spending, balance and debt by year
| Year | Revenue | Spending | Balance | Balance (% of GDP) | Debt (% of GDP) |
|---|---|---|---|---|---|
| 2024 | MX$7,675bn | MX$9,780bn | −MX$2,105bn | −6.3% | 62.3% |
| 2023 | MX$7,240bn | MX$8,725bn | −MX$1,485bn | −4.7% | 56.0% |
| 2022 | MX$6,488bn | MX$7,835bn | −MX$1,347bn | −4.6% | 55.1% |
| 2021 | MX$5,734bn | MX$7,123bn | −MX$1,389bn | −5.2% | 57.3% |
| 2020 | MX$5,497bn | MX$7,059bn | −MX$1,562bn | −6.5% | 62.0% |
| 2019 | MX$5,486bn | MX$6,816bn | −MX$1,329bn | −5.3% | 52.3% |
| 2018 | MX$5,255bn | MX$6,360bn | −MX$1,105bn | −4.6% | 48.1% |
| 2017 | MX$5,167bn | MX$6,043bn | −MX$876bn | −3.9% | 48.9% |
| 2016 | MX$4,804bn | MX$5,482bn | −MX$678bn | −3.3% | 51.0% |
| 2015 | MX$4,299bn | MX$5,307bn | −MX$1,008bn | −5.2% | 52.5% |
| 2014 | MX$4,195bn | MX$5,126bn | −MX$930bn | −5.1% | 50.1% |
| 2013 | MX$3,950bn | MX$4,555bn | −MX$605bn | −3.6% | 49.4% |
| 2012 | MX$3,784bn | MX$4,521bn | −MX$738bn | −4.5% | 46.1% |
| 2011 | MX$3,462bn | MX$4,231bn | −MX$769bn | −5.0% | 42.7% |
| 2010 | MX$3,023bn | MX$3,415bn | −MX$392bn | −2.8% | 38.6% |
| 2009 | MX$2,740bn | MX$3,113bn | −MX$372bn | −2.9% | 37.5% |
| 2008 | MX$2,988bn | MX$3,101bn | −MX$114bn | −0.9% | 42.3% |
| 2007 | MX$2,420bn | MX$2,494bn | −MX$74bn | −0.6% | 41.2% |
| 2006 | MX$2,247bn | MX$2,335bn | −MX$87bn | −0.8% | 36.4% |
| 2005 | MX$1,967bn | MX$2,022bn | −MX$56bn | −0.6% | 37.9% |
| 2004 | MX$1,794bn | MX$1,857bn | −MX$62bn | −0.7% | 34.7% |
| 2003 | MX$1,571bn | MX$1,629bn | −MX$58bn | −0.7% | 33.7% |
Sources and method
- OECD, government accounts. Table 12: total revenue and spending, taxes and contributions, rents, spending by nature, balance by level of government, 2003–2024. INEGI national accounts reported to the OECD, calendar years. France in the comparison is read from the same tables.OECD Table 12
- OECD, financial dashboard. General government gross debt and net financial worth, % of GDP.OECD Financial dashboard
- OECD, social expenditure database (SOCX). Public spending on pensions (old age and survivors) and health, % of GDP, since 1990.OECD SOCX
- IMF, World Economic Outlook (April 2025). General government balance before 2003.IMF World Economic Outlook, April 2025
- World Bank. Share of people aged 65 and over.World Bank SP.POP.65UP.TO.ZS
- Method. Constant pesos: current pesos adjusted by the GDP deflator. The scope is general government as defined by the national accounts: it excludes Pemex and CFE, which the broadest deficit measure published by the Finance Ministry (public sector borrowing requirements) includes. Rents are the income from subsoil assets collected by the state; they are part of “Other revenue”.
- Further reading. Finance Ministry (SHCP), INEGI, Centre for Economic and Budgetary Research (CIEP).SHCP — Finanzas públicasINEGI — Cuentas por sectores institucionalesCIEP