This week, the Mexican Petroleum Fund for Stabilization and Development (FMPED) announced it had exceeded its income expectations by MX$84.9 billion, taking in MX$541.7 billion in 2018. This is the second consecutive year that this has occurred. 2018 revenues were 16.6 percent higher in real terms than those in 2017, and represented 2.4 percent of the GDP.

The higher revenues were mainly explained by the increase in the price of the Mexican Mix, which in 2018 averaged US$62.16/b, US$15.94 higher than expected in the 2018 Budget, and US$13.66 higher than its price during 2017.

The FMPED reported in its preliminary figures that the Long-Term Reserve ended 2018 with a balance of just over US$1 billion. This reserve was created in the Energy Reform, is administered by Banxico and serves as a second line of defense in the event of the fall in public revenues once the resources of the Budgetary Income Stabilization Fund have been exhausted.

If at any time the reserve exceeds 3 percent of GDP (currently US$34.5 billion), additional resources may be used to finance projects that would benefit future generations, such as a universal pension system, science, technology and innovation projects and renewable energies, among other projects.

In 2017, the FMPED was audited by the Superior Audit of the Federation (ASF), which concluded that “no observations were made for the fund.”

Source: Dinero en Imagen

 

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