Mexico Unveils 2026 Budget: Health Focus, Infrastructure Investment, and Tax Base Expansion
Mexico City – the Mexican government has presented its proposed fiscal package for 2026, outlining a budget focused on bolstering public health, expanding social programs, and modernizing the nation’s tax system. Presented to legislators in San Lázaro, the plan includes revisions to key legislation including the Income Law, Federal Expenditure Budget, Rights Law, fiscal Code, and the Special Tax on Production and Services Law.
Healthier Habits, Expanded Revenue: A key component of the 2026 budget centers on incentivizing healthier lifestyles and offsetting healthcare costs. Proposals include adjustments to the Impuesto Especial sobre Producción y Servicios (IEPS) – a special tax – applied to sugary drinks and tobacco products. Officials stated these measures aim to discourage consumption of harmful products and alleviate the financial burden of treating related illnesses.
Beyond health-focused taxes, the government intends to broaden the tax base. A significant measure will limit the deductibility of quotas paid to the Institute for the Protection of Bank Savings (IPAB) by multiple banking institutions, with 75% of these payments now considered non-deductible.Investing in Social Programs & Infrastructure: The 2026 budget allocates resources equivalent to 3% of Mexico’s GDP to priority social programs, aiming to benefit approximately 82% of the country’s families. Notable initiatives include:
Universal Pension for Women: Expanding the Women Welfare pension to provide universal coverage for all women aged 60-64.
Educational Access: Guaranteeing access to education through the Rita Cetina scholarship program.
Unified Healthcare: Integrating the IMSS-Bienestar system to provide comprehensive healthcare coverage for individuals without social security and workers.
expanded Healthcare Access: Scaling up programs like “Health Casa by Casa” (Health house to House), “Laboratory in Your Clinic,” and consolidated medicine purchasing to improve coverage and reduce regional disparities.
Significant investment is also earmarked for infrastructure progress through the Mexico plan, with over 228 billion pesos allocated to strategic projects. These include:
Rail Expansion: Extending rail lines connecting the Felipe Ángeles International Airport (AIFA) to Pachuca and Querétaro to Ilarapuato.
Road Modernization: Upgrading key road corridors like Valles-Tampico and Saltillo-Monclova.
* Infrastructure Strengthening: Enhancing port, water, and agricultural infrastructure.
Modernizing Tax Collection & Fiscal Stability: The government projects 8.7 billion pesos in revenue to finance these initiatives,relying heavily on combating tax evasion,digitalization,and modernization of the fiscal framework. Officials emphasized that expanding the taxable base will increase federal revenue and,consequently,allocations to states and municipalities.
Fiscal Outlook: The proposed budget forecasts a GDP deficit of 4.1% for 2026, a slight advancement from the modified 2025 projection of 4.3%. Public debt is expected to represent 52.3% of GDP. Treasury officials maintain these figures demonstrate a commitment to responsible fiscal policy, balancing productive investment, essential social programs, and macroeconomic stability.
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