### Federal Funds Increase for Baja California in July
As of July 2024, the federal government has transferred 40,055.9 million pesos to Baja California, which includes both participations and contributions. This marks an increase of nearly 4 billion pesos compared to the same period last year, which recorded 36,091.9 million pesos.
According to the Center for Public Finance Studies from the Chamber of Deputies, the federal participations (unmarked funds) received by Governor Marina del Pilar Ávila Olmeda’s administration amounted to 25,302.2 million pesos by July 31, representing a 8.9% annual increase.
On the other hand, the contributions (marked funds) transferred to Baja California totaled 14,753.7 million pesos, showing a variation of 842.3 million pesos (1.2%) compared to July 2023.
Despite the increase, Baja California has been noted among the states that failed to comply with Article 6 of the Fiscal Coordination Law. This article states that no state shall allocate less than 20% of participations to municipalities, must deliver within five days post-receipt, and should publish the amounts quarterly, among other conditions.
According to the latest publication by the Ministry of Finance and Public Credit in the Official Journal of the Federation, Baja California failed to meet its monthly obligation of providing detailed information on the funds administered to each municipality for each concept of federal participations via email in an Excel file, within 10 calendar days after the corresponding month. This non-compliance was noted for May.
From January to July 2024, federalized spending across the 32 states reached 1.575 trillion pesos, a 5.8% real-term increase compared to the same period in 2023.
The highest amount paid to the states came from category 28 of federal participations with 798.7 billion pesos, followed by category 33 of federal contributions with 585.6 billion pesos.
Subsequently, decentralization and reassignment agreements amounted to 138.7 billion pesos, public health allocation received 41 billion pesos, and category 23 amounted to 11.3 billion pesos.
The states that received the highest amounts were Estado de México (174.8 billion pesos), Ciudad de México (136 billion pesos), and Veracruz (93.4 billion pesos). However, Ciudad de México (10.7%), Aguascalientes (10.6%), and San Luis Potosí (8.8%) experienced the highest annual increases.
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### Related News:
**Increase in Federal Funds Across States in 2024**
The federal government has shown an overall increase in the allocation of funds to states for 2024. Nationally, states have experienced significant growth in federal participation and contributions. Predictions for the next fiscal year indicate continued growth as the government aims to better equip states for local project development and public services enhancement.
**Tax Revenue Enhancement Drives Fund Redistribution**
Recent reforms in tax collection and revenue generation have allowed for a more robust redistribution of funds, benefiting numerous states across the country. The federal administration reports that these reforms have enabled a more efficient allocation process, targeting critical areas such as healthcare, education, and infrastructure.
**Compliance Challenges and Transparency Issues Persist**
Despite the increased funds, several states, including Baja California, face challenges in compliance with federal regulations regarding fund distribution to municipalities. Transparency in the process remains a key concern, and federal bodies are working towards tighter regulations and monitoring to ensure proper use of allocated funds.
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