Comments on public finances in Mexico: 2019 to 2021

Abstract

This essay is presented with a deductive method orientation, a hermeneutic paradigm and a quantitative approach. The purpose of this paper is to highlight the role of public finances in our nation's Gross Domestic Product (GDP), where a quarter comes from the public sector. Federal public finances allow us to locate a quarter of Mexico's GDP from 2019 to 2021 and tax collection stands at 14.3% of GDP in the period, far from the average of 24.2% of GDP of the countries of the Organization for Economic Cooperation and Development, but also far from what is collected by Latin American nations such as Brazil, Argentina, Chile, and Colombia. The Mexican tax system is based on income and value-added taxes, both contributing 83.3% of tax revenues from 2018 to 2021. Eleven million members of the Mexican Social Security Institute (IMSS) contribute just under 40% of total national income tax.