New Developments and Perspectives of the 2026 Federal Expenditure Budget

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On November 21, 2025, the Federal Expenditure Budget (PEF) for Fiscal Year 2026 was officially published in the afternoon edition of the Official Gazette of the Federation (DOF). This legislative decree establishes the magnitude and direction of federal public spending, outlining strategic guidelines and new developments compared to previous fiscal years:

  1. Consolidation of the Pension Fund for Well-being

One of the most significant allocations is the increased capitalization of the Pension Fund for Well-being. This recently established mechanism receives a significant financial boost in the 2026 PEF to ensure sufficient resources and guarantee a dignified replacement rate for workers retiring under the Afores (Retirement Fund Administrators) system. This measure is perceived as a long-term social and fiscal priority.

  1. Increased Spending on Water and Energy Infrastructure

A notable increase is observed in the allocations for Physical Investment in Critical Infrastructure. Specifically, there is a prioritization of:

  • Water Projects: Increased investment in dams, water treatment systems, and aqueducts, seeking to mitigate the effects of water scarcity in key regions.
  • Energy Sector: Robust allocations directed toward the modernization of the facilities of the Federal Electricity Commission (CFE) and Petróleos Mexicanos (Pemex), with an emphasis on operational efficiency and exploration.
  1. Conservative Macroeconomic Outlook

The 2026 Federal Expenditure Budget (PEF) was prepared under a prudent economic outlook. It projects moderate GDP growth and uses conservative oil price and exchange rate assumptions. This approach seeks to create fiscal flexibility that allows the government to address potential volatility in international markets without compromising the stability of public finances.

  1. Strengthening Public Security

Resources allocated to public security institutions and the National Guard are increased. The objective is to strengthen operational and intelligence capabilities, as well as inter-institutional coordination within the national security strategy, with a focus on technological equipment and personnel training.

Source:

https://www.diputados.gob.mx/LeyesBiblio/pdf/PEF_2026.pdf