Mexico is rearming and plans to have the largest defense budget in its history by 2023

Mexico’s Ministry of Defense (Sedena) will have the largest budget in its history in 2023.

This year, subject to congressional approval, the Mexican government has earmarked US$5.584 billion for the institution, 7.45% more than the current year.

This would add US$1.720 billion for the National Guard (GN) so that next year, the military institution led by Major General Luis Cresencio Sandoval would have a record budget of US$7.304 billion.

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This is the result of the legislative reform recently proposed by Mexican President Andrés Manuel López Obrador and has already been approved by the Senate.

It provides that the GN will remain under the Secretariat of Security and Citizen Protection. Still, its operational and administrative management, including 100% of its budget, will be transferred to Sedena.

BUDGET

The funding allocated to the GN in the draft federal spending budget (PPEF) also represents the largest budget ever given to the force since its inception, as they will receive US$235.4 million, 11.5% more than in 2022.

The economic package submitted to the House by the Treasury Department includes these funds as part of the overall SSPC budget to which the National Guard is assigned.

The SSPC’s budget accounts for more than one-third of the total spending allocated to that agency.

In reality, however, these resources would be managed by the Army, not the SSPC.

This is stipulated in the sixth transitional article of the resolution discussed by the senators, which states that the Security Secretariat should transfer “the budgetary and financial resources” corresponding to the NG to the Sedena within 60 days.

This was previously approved by all agencies involved and stated in the Ministry of Finance’s official letter 315-A-3496, dated Aug. 30, whlly states that the SSPC will transfer the funds allocated to the National Guard to Defense.

On the other hand, Sedena’s draft budget includes an allocation of US$41.7 million for the Aeropuerto Internacional Felipe Ángeles company, which is owned by the Army and is responsible for managing and operating the airport of the same name.