IMSS, CFE and Issste together contribute more income than Pemex

In the period January-November 2024, the Mexican Social Security Institute (IMSS), the Institute of Security and Social Services of State Workers (Issste) and the Federal Electricity Commission (CFE) together contributed 15.9 percent of budget revenues, while the contribution of oil revenues was 13.1 percent, according to the most recent report on Public Finance and Public Debt of the Ministry of Finance and Public Credit (SHCP).

Oil revenues decreased 14.6 percent in real terms from January to November 2024 compared to the same period in 2023, due to lower crude oil production and a reduction in the price of natural gas.

On the other hand, the income of the IMSS, the ISSSTE and the CFE increased respectively 7, 5 and 1.6 percent in real annual terms in the first 11 months of 2024, and exceeded the expected income by 99 billion pesos.

As of November of last year, oil revenues from the public sector totaled 890,986 million pesos, while in the same period of 2023 they were 996,086 million pesos.

Transfers from the Mexican Petroleum Fund for Stabilization and Development fell from 304,786 to 179,467.6 million pesos from the period January-November 2023 to the same period in 2024, a reduction of 43.8 percent.

Oil revenues have been fundamental to public finances; However, its relevance has decreased due to the fall in production, prices and the right of shared utility, mentions a study by the Center for Economic and Budgetary Research (CIEP).

The organization mentioned that the decline has especially affected oil entities such as Campeche, Tabasco, Tamaulipas and Veracruz, whose finances depend, in part, on these resources.

The importance of oil revenues has decreased in recent years, which has caused changes in the composition of federal participatory revenue (RFP).

Given that the RFP distributes resources through participation to the federal entities, a decrease in these resources due to the energy transition could affect them, mentions the analysis prepared by César Augusto Rivera de Jesús, CIEP specialist.

Oil revenues have been an important component of the country’s tax revenue. In 2008 they represented 8 percent of the gross domestic product (GDP). However, their participation has been decreasing. In 2015 they represented 2.2 percent of GDP, and by 2023, 1.1 percentaccurate.