Capistrán considers that the Mexican government runs the risk of having an even larger deficit with its effort to rescue the world’s most indebted oil company.

Moreover, he pointed out that the budget approved by the Mexican Congress for 2024 reflects significant fiscal deterioration, with the country’s largest fiscal deficit in 30 years.

Last year, the contribution of Petróleos Mexicanos (Pemex) to the country’s public finances reached its lowest level since records began in 1990, mainly as a result of fiscal benefits granted to the company by this government.

However, the financial situation of the oil company shows no improvement, as it continues to accumulate losses and its debt level has remained practically the same, according to experts. In 2023, petroleum contributions to the treasury totaled 1 trillion 78 billion 991 million pesos, representing 15.3% of the total income reported by the Ministry of Finance and Public Credit.

On the other hand, the specialist predicted that the Mexican economy will decelerate to a growth rate of 2% annually in the second half of 2024, following Mexico’s elections in June and the United States’ elections in November.

In 2023, Mexico’s gross domestic product (GDP) closed with an increase of 3.1%, according to official data, while the Mexican government estimates a growth of 3% for this year, higher than the 2% expected by BofA

The situation of Pemex is so complicated that even the government has emphasized the support it provides.

The current administration has not managed to stop the theft of petroleum products, with fuel theft representing between 30% and 40% of total fuel sales, and the production platform is lower than that of 2018.

“There has been no effort to increase reserves, and Pemex does not generate cash flow to face its creditors and suppliers,” government sources said.