Mexico Targets Smaller Budget Deficit, More Tax Income in 2026

The Mexican government is looking to trim its budget deficit next year compared to this year’s expenditures, according to its official spending blueprint.

The budget plan announced by President Claudia Sheinbaum’s finance chief late Monday comes as economic growth has cooled and US trade policies continue to stoke uncertainty.

The plan also cuts Mexico’s 2025 economic growth forecast to no more than 1.5% of gross domestic product, though it sees an expansion of between 1.8% to 2.8% for next year.

The 93-page blueprint shows that Sheinbaum’s administration will target a budget gap of 4.1% of gross domestic product for ...