The Mexican government announced plans to significantly reduce financial support for state-owned oil company Petróleos Mexicanos (Pemex), cutting nearly 70% of funds by 2027. The amount is expected to drop from the US$ 14 billion allocated in the current budget to 81.1 billion pesos (US$ 4.8 billion) next year.
President Claudia Sheinbaum presented Mexico's Congress with the 2027 budget bill, which includes the expectation that Pemex will register a financial surplus of 95.1 billion pesos (US$ 5.6 billion). The government believes the state-owned company will be able to operate more autonomously with this cut.
Despite the reduction in support for Pemex, Mexico will continue to record a significant fiscal deficit of 3.9%, compared to the 4.1% projected for this year. The deficit remains high due to social spending and infrastructure investments that the government intends to maintain.
The measure comes in a context of concern about the risk of losing Mexico's investment grade. The cut in support for the state-owned oil company is part of the government's strategy to balance public accounts while trying to preserve the country's credit rating.
