Factors in the Distribution of Federal Participations

Currently, one of the most relevant issues in Mexico is undoubtedly the management of public finances and with it the life of the public treasury of the States and Municipalities that make up the structure of the country's public administration, which is composed of revenues from the federation (participations, contributions, extraordinary support branch23 and decentralization and reallocation agreements), as well as local contributions (taxes, duties, products and benefits). These resources are added together and, in the case of some projects, are mixed to finance public works with a greater impact on the region. The deficits generated are financed through debt guaranteed with federal resources (Participaciones) and/or local resources (Contribuciones locales).