### Baja California’s Debt Reduced by 4.4 Billion Pesos: CEFP Report
As of June 30, 2024, Baja California’s debt stood at 21,682.3 million pesos, marking a significant reduction of 4,418.9 million pesos over six months, according to the Center for Public Finance Studies (CEFP) of the Mexican House of Representatives.
Baja California leads the list of 23 Mexican states that reported lower debt levels in the second quarter of the year. However, on an annual basis, the debt reduction was more modest, amounting to 2,421.7 million pesos.
The study released on September 13, 2024, indicates that Baja California’s debt is slightly above the national average, and the state remains in the top ten states with the highest debt levels. The states with the highest debt are Nuevo León (106,712.5 million pesos), Mexico City (98,354.2 million pesos), and the State of Mexico (68,118.1 million pesos).
In terms of composition, 84% of Baja California’s debt is attributed to the state government, 8% to state public entities, and another 8% to municipal governments. The debt represents 23.7% of Baja California’s total income and 54.8% of its federal allocations, both of which exceed the national average.
Furthermore, the state’s debt amounts to 1.8% of its Gross Domestic Product (GDP), which is slightly below the national average of 2.0%. The per capita debt stands at 5,632.2 pesos.
Baja California’s debt carries an interest rate of 11.5%, which is higher than the national average of 11.1%. However, it is significantly lower than the debt interest rate in Baja California Sur, which is the highest in the country at 12.4%.
The CEFP report shows that, during the referenced period, subnational debt had a balance of 6,718.8 million pesos, representing a real-term reduction of -4.9% from the end of 2023 to the second quarter of 2024. States with the highest per capita debt include Nuevo León (18,070.1 pesos per person), Chihuahua (13,789.3 pesos), and Quintana Roo (11,554.3 pesos).
Mexico City has the highest debt relative to its federal allocations at 100%, followed by Coahuila at 86.8%; the State of Mexico at 85.5%; San Luis Potosí at 83.8%; and Guerrero at 83.4%.
### Additional Context on Baja California’s Economic Environment
Recent reports from various sources highlight ongoing fiscal initiatives and economic activities in Baja California. Efforts to enhance financial stability are in effect, focusing on responsible management of resources and reducing dependency on federal funding.
For instance, initiatives to bolster local industries and create more job opportunities are underway, aimed at enhancing the state’s economic autonomy. Additionally, infrastructure projects are being prioritized to improve public services and attract private investments, which may further reduce the debt burden in the long term.
Keep following TJGringo.com for the latest updates on Baja California’s fiscal health and comprehensive coverage of economic developments across the region.
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