Mexican lawmakers pass 2023 revenue budget with US$68/b oil estimate

A key part of Mexico's 2023 budget has been cleared by the lower house of congress with an oil price estimate of US$68.7 per barrel.

The government is expecting the country's oil production platform to post an average of 1.87Mb/d next year, "which considers the trend observed over the last few years." 

if the target is met, it would mean slight production growth slightly, since the country has averaged output of 1.83Mb/d this year up to August, including condensates. 

The bill also enables Pemex to increase its domestic debt by 27bn pesos (US$1.35bn) and its foreign debt by US$142mn. Public power utility CFE will also be able to issue new debt totaling 12.7bn pesos domestically and foreign debt of US$397mn, according to a lower chamber release.

During the debate in congress, the bill was criticized for maintaining the finance ministry's 2023 growth forecast of 3% of GDP. The International Monetary Fund estimates that Mexico will grow by 1.7% and independent forecasts have recently trended downward.

With this forecast, the government is expected to accrue 8.29tn pesos in revenues. The income budget will now move to the senate for debate. 

Mexico's separate spending budget is still being assessed by the lower house.