The Cost of Government Benefits Exceeds Half a Billion
The expenditure that the government allocates for employee benefits is steadily growing year after year, despite austerity measures and fiscal consolidation policies. According to data from the Ministry of Finance and Public Credit (SHCP), between 2018 and 2024, the fund for benefits rose from 393,154 million to over 574,737 million pesos, representing a 46% increase in nominal terms, a figure that exceeds the 34% accumulated inflation over the same period, as noted by Inegi.
Records from the Ministry indicate that during 2021 and 2022, the amounts allocated for government employee benefits were the lowest in proportion to total spending, with only 5.1% and 5.6%, respectively, due to the federal government's austerity policies and the repercussions of the pandemic. However, for the years 2023 and 2024, this percentage increased and stabilized at 6.2%. “If there are a good number of employees and benefits are rising, that can be understood, but if the number of permanent employees has decreased and the increases are concentrated in certain positions, that could indicate a problem,” stated Christopher Cernichiaro, a researcher at the Autonomous Metropolitan University (UAM). This increase in benefits is notable, even though the number of institutions within the Federal Public Administration fell from 316 in 2018 to 304 in 2023, and the total number of bureaucrats rose from 1.4 million in 2018 to 1.6 million in 2023, a figure nearing the levels of 2017, according to the 2024 National Census of Federal and State Government by Inegi. A shift in the composition of personnel has also been observed, where permanent or unionized workers have decreased from 72% to 70% of the total staff, while those hired on a contractual basis have increased from 1.4% to 2.3%; trust employees have dropped from 21% to 16%. The most expensive benefits include year-end bonuses, economic assistance for households, contributions to the IMSS (Mexican Social Security Institute), vacation pay, and Sunday work premiums, among other perks. “There are benefits that may seem trivial, especially in the digital age, and it would be wise to analyze how they are distributed and whether they are truly necessary, as every peso spent on these benefits is one less peso that could be invested in more critical areas,” concluded Cernichiaro. In the last quarter of 2024, under Claudia Sheinbaum's administration, payments for these benefits reached their highest level compared to similar periods since 2018.
As spending on bureaucrat benefits continues to rise, it is vital for authorities to review and adjust these policies to ensure that resources are used efficiently and effectively. Redirecting spending can benefit not only public administration but also the general population, ensuring better use of taxpayers' money and citizen contributions.
