Regarding policies to mobilise domestic resources for development and improve fiscal conditions, Mexico has made significant efforts to eliminate universal compensation between different types of taxes in the aim of reducing tax evasion and improving transparency and accountability in the tax system. Implemented since 2019, this policy has generated substantial resources and provided greater control over value-added tax (VAT) balances. Another crucial initiative is the adoption of a Base Erosion and Profit Shifting strategy, aligning Mexico’s tax system with international standards to curb tax avoidance by multinational corporations. Initiatives like the Zero VAT rate on sanitary pads, tampons and menstrual cups aim to lower economic barriers for women, ensuring equitable access to essential products. Furthermore, the Employment Subsidy introduced in 2024 specifically targets lower-income individuals, boosting their disposable income and promoting fairer tax distribution. The country has also modernised its tax laws to include digital economy transactions, facilitating VAT collection from foreign digital service providers and promoting economic formalisation.
To advance a sound, inclusive and sustainable financial market, Mexico has implemented its National Financial Inclusion Policy (PNIF) for 2020-24 to enhance financial inclusion and financial health nationwide. Co-coordinated by several public administration entities, this policy aims to achieve critical purposes, including expanding access to financial products and services, promoting digital payments, and strengthening financial infrastructure to mitigate information asymmetries. The PNIF also places a strong emphasis on improving the economic and financial literacy of citizens, along with ensuring financial protection mechanisms for vulnerable groups such as women, migrants, indigenous, elderly and rural populations. In support of the Sustainable Development Goals (SDGs), Mexico has introduced sovereign bonds linked to the SDGs, mobilising approximately USD 18 billion since 2020. Additionally, the Sustainable Finance Mobilisation Strategy aims to redirect capital flows towards sustainable projects. Furthermore, the Sustainable Mexico’s Sustainable Taxonomy, a pioneering financial policy instrument, is an integral part of this Strategy guiding investments into activities with positive environmental and social impacts, with gender equality as a priority objective. The Strategy also includes financial inclusion and literacy programmes and advocates for mainstreaming gender equality within financial institutions and financial inclusion initiatives. These comprehensive efforts involve collaboration among national, subnational, and international institutions, fostering public-private dialogue and supporting the development of a resilient, inclusive and sustainable financial market.
In terms of regional and international finance and partnerships to catalyse international resources, Mexico has initiated strategic collaborations to enhance institutional strength and innovation across various sectors. For instance, it implemented a new regulatory process to manage technical co-operation, ensuring transparency, regulation, and co-ordinated support from international financial organisations to their member countries. This co-operation includes information gathering, knowledge transfer, training, courses, certifications, studies, and analyses aimed at supporting the design and implementation of public policies and strategic projects through non-reimbursable resources. It involves collaboration across Mexico's public sector and federal entities, with the goal of fostering sustainable economic growth and development. The Ministry of Finance and Public Credit oversees the allocation of these resources, with progress being made towards the creation of a normative document to guide internal regulations. This initiative underscores Mexico's commitment to leveraging international partnerships for innovation and strengthening institutional capabilities.