Economic challenges await Sheinbaum in the presidency of Mexico.

The next president of Mexico, Claudia Sheinbaum, will face a monumental challenge upon taking office, as she will need to find a way to fulfill her campaign promises of expanding social programs in a scenario of growing budget deficit and financial pressure. With a deficit that reached 5.9% of the Gross Domestic Product (GDP) in 2024, Sheinbaum will be forced to seek solutions to balance public finances and ensure the country's economic sustainability. The increase in public spending during the last year of President Andrés Manuel López Obrador's term has significantly contributed to the deficit increase, posing an additional challenge for the incoming administration. While Sheinbaum has expressed her intention to reduce bureaucracy and improve tax collection efficiency, she has not considered a deep fiscal reform, raising uncertainty about how she will finance her social program proposals. Economic experts, analysts, and former officials have pointed out the need for a tax reform to increase the country's tax revenues. Despite Sheinbaum's reluctance to consider tax increases, Mexico's fiscal reality may require more drastic measures to ensure the viability of social programs and long-term economic stability. Mexico's projected economic growth by the Bank of Mexico is modest, limiting the prospects of increasing revenues without significant tax reforms. Tax collection in Mexico remains well below that of other countries, underscoring the urgency of addressing this issue to prevent further deterioration of public finances. The lack of resources to fund the expansion of social programs could jeopardize Sheinbaum's campaign promises, casting doubt on the viability of her proposals in the absence of concrete measures to increase government revenues. With the budgetary challenge becoming increasingly pressing, the next president will face a titanic task of balancing social needs with the country's economic reality. The debate around a tax reform has intensified, with calls to review how properties, cars, and corporate profits are taxed, as well as exploring new ecological taxes and royalties from strategic sectors such as Pemex. The complexity of Mexico's fiscal situation demands creative and strategic solutions to address the financial challenges facing the country. In a context of economic uncertainty and budget constraints, the ability of the next administration to find innovative and sustainable solutions will be crucial to ensuring Mexico's stability and development. With tax collection still below international and regional standards, a comprehensive and collaborative approach is needed to effectively and equitably address the financial challenges. Ultimately, Sheinbaum's ability to manage public finances and strike a balance between social demands and budget limitations will largely determine the success of her presidency. In a complex and challenging economic scenario, the incoming administration must rise to the occasion and take bold and decisive measures to ensure the prosperity and well-being of the Mexican population.