Mexico’s public sector finances were much stronger in 2012 than those of the US. In fiscal year 2012, the US federal government’s deficit came to 6.9% of GDP. Mexico’s was 2.6% of GDP. Adding in states’ debts, Mexico's debt ratio is still below that of the US, which, by the way, doesn’t include state debt either. Excluding investments by Pemex, the deficit was 0.6%.
Mexico’s debt to GDP ratio is low but there are some troubling signs. Expenditures grew more rapidly than income (respectively, +3.8% and +3.3%, discounting inflation). Oil income, which accounted for a hefty 33.8% of public sector revenues in 2012, was up 3.7% while tax revenues were only 1.4% higher – in a year in which the economy grew close to 4%. A substantial 28.5% jump (again, excluding inflation) in “other” non-tax revenues left total non-tax revenues 16.6% higher than in 2011. The increase in non-tax income accounted for 15.5% of the increase in public sector revenues last year.