Rogelio Ramírez de la O faces key challenges at the helm of the Treasury during Sheinbaum's government

Rogelio Ramírez de la O, a renowned economist graduated from Harvard, will remain at the helm of the Ministry of Finance and Public Credit (SHCP) during the beginning of Claudia Sheinbaum's government in October, generating reassurance among investors and markets. This decision has been well received by experts and analysts, who emphasize the importance of continuity in Mexican fiscal policy to ensure stability and avoid abrupt changes that could affect the country's economy. With the arrival of a new six-year term, a more favorable economic outlook is foreseen, marked by the need to make public spending more efficient, reduce the budget deficit, increase tax revenues without resorting to a tax reform, and find a way to continue supporting Pemex without compromising public finances. These challenges will be crucial for Ramírez de la O's performance at the helm of the SHCP. The delivery of the 2025 economic package is shaping up to be the first major test for the new head of Finance, where strategies will need to be devised to reduce the deficit, control public debt, increase revenues, and support Pemex without it being the agency responsible for saving its finances. This scenario highlights the need for efficient and responsible financial management. One of the main challenges will be reducing the deficit, considering that in the previous administration, a tax reform to increase taxes was not implemented. Keeping the deficit under control and avoiding a significant increase in public debt becomes essential to ensure the country's economic stability and preserve its international credit rating. Regarding revenue generation, efforts will be made to narrow the gap between public revenues and expenditures, without resorting to a tax reform, but rather by betting on the digitalization of processes at the Tax Administration Service (SAT). This strategy aims to optimize collection without affecting the population with new taxes. Another important challenge will be determining how to support Pemex and materialize investments in key infrastructure projects for the country's development. It is expected that stability in spending and budget policy will be maintained, with the aim of containing financial risks and completing pending projects without compromising the nation's fiscal health. While the change in Pemex's business model is not the direct responsibility of the SHCP, defining the support that will be provided and under what conditions will be fundamental. Clear and transparent agreements are necessary to ensure the sustainability of the oil company and avoid additional pressures on public finances. In the upcoming economic package, concrete answers are expected regarding the historic fiscal deficit, which could involve cuts in spending and the completion of large-scale infrastructure projects. This measure will contribute to reducing the deficit and seeking greater financial stability in the country, in line with the objectives set by the new administration.