Mexico will invest US $ 35,050 million in infrastructure, with greater momentum in the energy sector
Thus, 2019 will be the second year in a row that investment in infrastructure rebounds, driven mainly by what will be exercised in the fuel and energy sector, which will have a real increase of 41.9%, which will be the highest rate since 2009.
The federal public sector will allocate this year 669 thousand 638 million pesos (the US $ 35,050 million) in physical investment, which will imply an increase of 4.4% in real terms compared to this year, figures from the Ministry of Finance report.
Thus, 2019 will be the second year in a row that investment in infrastructure rebounds, driven mainly by what will be exercised in the fuel and energy sector, which with 338 thousand 540 million pesos (US $ 17.8 billion), will have a real increase in 41.9%, which will be the highest rate since 2009.
In turn, this energy investment will represent 50.6% of the total investment, the highest share of the last seven years.
Alejandra Macias, a research coordinator of the Center for Economic and Budgetary Research (CIEP), explained to Excelsior that while the recovery in investment is favorable, it is still pending in the country in terms of planning and priorities.
The specialist said that the country already has guidelines to carry out preliminary studies before public works, however, since there are no consequences for not complying with these provisions, works without studies are still being considered.
On where to direct the investment, Alejandra Macias said that there are areas with large lags in coverage such as education, health, delivery, and procurement of justice and that usually are not as a priority in the budget.
By 2019, although investment in health will increase 22.8% real compared to the end of 2018, that of sectors such as education will fall 9.9%, justice will fall 72.3%, national security 55.2% and matters of public order and internal security will do so in 57.1%.
According to a recent CIEP study, of the total capital expenditure in 2019, 51.8% will be for infrastructure, and in turn, 95.8% of it will be exercised by three branches: CFE, Pemex and the SCT.