Mexico’s First Female President: Can She Fund Her Ambitious Plans?

Claudia Sheinbaum was inaugurated as Mexico's president last week, marking a historic moment as the first woman to hold this position. Initial reactions to her October 1st inauguration were largely positive, but as the excitement fades, the country's numerous challenges come into sharper focus. Among these, public finances remain a significant concern, as they underpin all public affairs. Without a budget, public policies cannot be implemented.

Mexico's tax collection is low compared to other OECD member countries and even some Latin American nations like Brazil, Argentina, Chile, Colombia, and Bolivia. This raises concerns about the government's ability to balance its income and expenses.

Sheinbaum's commitments as president add to these concerns. She plans to complete key projects initiated by former President López Obrador. Some of these projects, including the Interoceanic Train of the Isthmus of Tehuantepec and the Mayan Train, will not be completed by year-end and will require additional funding in 2025. Sheinbaum also plans to expand the Mayan Train project to include cargo transportation.

Other commitments include completing the unfinished Mexico-Toluca Interurban Train, a project inherited from the administration of Enrique Peña Nieto. Sheinbaum also made several campaign promises, such as implementing a pension for older women aged 60 to 64, which will place a significant burden on the budget.

Sheinbaum has also proposed the Rita Cetina Gutierrez universal scholarship for preschool, primary, and secondary school students, starting in 2025. Additionally, she has discussed increasing salaries for members of the Armed Forces, police, teachers, and health personnel.

Sheinbaum has also proposed her own infrastructure projects, including expanding ports, modernizing rural roads, and building highways. She has suggested constructing more trains throughout the country, starting with the Mexico-Pachuca line. Other promises include creating Pharmacies for Wellbeing, funding a Care System, building universities, and constructing at least one million new homes. She even hinted at launching a satellite during her term.

Another area of concern is the previous administration's support for Pemex. It is known that