SHCP proposes strategies to reduce financial deficit

The federal government's projections for 2027 call for greater austerity to curb the public deficit, with a cut of US$14.898 billion in programmable spending.

In the 2027 Preliminary Economic Policy Guidelines, the federal government has determined that cutbacks will continue in the funds channeled into the economy through programmable spending—a strategy whose effectiveness is questioned by analysts at the country’s leading financial institutions.

The document presented by the Ministry of Finance and Public Credit (SHCP) indicates that next year, programmable spending will be reduced by 6.8% in real terms compared to the 2026 budget.

According to estimates presented by the SHCP, net paid spending is expected to drop from 27.1% of GDP—as approved in 2026—to 25.2% by 2027.

In this context, the agency will rely on further cuts to achieve the goal of closing the public deficit at 4.1% for this year and 3.5% for 2027. Austerity measures will not prevent public debt from continuing to grow, reaching nearly US$1.2 trillion by next year and standing at 55% of GDP—more than 11 percentage points above the 43.6% level inherited from the previous administration.