AMLO’s Flagship Projects Drive Big Boost in Mexico’s 2024 Budget

President Andres Manuel Lopez Obrador’s big projects are a driving force behind the Mexican government’s plans to boost spending and widen the budget gap in 2024, consolidating his legacy before the next presidential election.

Under the Finance Ministry’s budget proposal, spending would increase 4.3% in real terms next year, or 9.3% nominally, to 9 trillion pesos ($512 billion). The fiscal deficit would widen to an estimated 4.9% of gross domestic product, the biggest since 1988 — a reflection of AMLO’s projects such as the Maya Train, the ocean-connecting Tehuantepec Isthmus rail link, social programs and his growing support for Pemex, the highly indebted state oil company.