Public universities in Mexico face tight 2026 budget

Mexico's public universities start 2026 with a mere 2% budget increase from 2025, insufficient to offset inflation and a 50,400 million peso deficit. The National Association of Universities and Higher Education Institutions (ANUIES) warns that this could worsen financial imbalances and lead to a 'reprivatization' of higher education. Key institutions like UNAM and IPN receive specific allocations, but student enrollment growth is not matched by funding.

Mexico's public universities are grappling with a challenging financial outlook in 2026, with a higher education budget of 218,160.2 million pesos, marking a 2% increase from the previous year. This adjustment fails to account for the GDP deflator (4.8%) or the 3.5% consumer price inflation, exacerbating a 50,400 million peso deficit.

ANUIES, headed by Luis González Placencia, notes that state public universities see only a 1.8% rise. "This situation can lead to a phenomenon I compared to 'reprivatization', in the sense that by ceasing to support public education, private institutions gain ground," warned González Placencia.

The budget is allocated across various administrative branches, such as SEP's Ramo 11, covering UNAM (53,748.5 million pesos) and IPN (22,977.7 million pesos, up 2.9%). Prior discrepancies were addressed, including 329 million for IPN and 4,371 million for the University of Guadalajara.

From 2018 to 2025, public higher education enrollment grew 16.3%, yet subsidies fell by 2%. This forces institutions to pass costs to families, compounded by pensions and retirements accounting for up to 50% of payroll. In December 2025, rectors met with SHCP to discuss issues, but planned working groups remain unestablished.

The General Law on Higher Education mandates real and increasing increments, factoring in human resources and infrastructure, but these were not applied in the Federal Expenditures Budget.

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Argentine senators in heated Senate debate over 2026 Budget, tension on Article 30 cutting education funding targets.
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Argentine Senate debates 2026 Budget amid tension over education article

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Argentina's Senate will convene this Friday to approve the 2026 Budget, with secured support for general approval but resistance to Article 30, which eliminates funding targets for education and science. The ruling party aims to pass it unchanged after lower house approval, while negotiating with allies to protect the controversial provisions. Javier Milei's government views this law as essential for its fiscal roadmap and signals to international markets.

Colombia's Comptroller General revealed in its report 'Financial Sustainability of Colombian Public Universities 2019-2024' that only one of the 34 public universities in the country achieves financial self-sustainability. The study highlights a high concentration of resources in four main institutions, exacerbating regional inequalities. Additionally, the system's pension liability reaches 10.3 trillion pesos in 2024.

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Economist Gabriel Casillas forecasts a 2026 for Mexico with improved growth prospects, driven by the US economy and a light political agenda. He anticipates gradual fiscal consolidation and early inflationary challenges impacting interest rates. He also highlights the T-MEC review and minor local elections.

With 200 days left in Gustavo Petro's government, the Presupuesto General de la Nación (PGN) execution shows the lowest rates in two decades. As of November 2025, the average execution stands at 72.9%, below the century average of 74.9%. Sectors like health and education lead, while transportation and the presidency lag behind.

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France's Ministry of National Education announced, one month late, a distribution of resources for the 2026 school year that includes more teacher job cuts than outlined in the draft finance law. Public primary schools will lose 2,229 positions, and middle and high schools over 1,800. The ministry describes this as merely a 'reserve adjustment'.

The Chamber of Deputies approved and dispatched the public sector readjustment bill to the Senate, including a gradual 3.4% salary increase. However, it rejected the controversial 'tie-down norms' pushed by the government, which plans to reintroduce them in the Upper House. Opposition lawmakers criticized the lack of clear funding for part of the fiscal cost.

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The Chamber of Deputies began a tense session to debate the 2026 Budget, where the officialism achieved quorum and bets on a chapter-by-chapter vote. The opposition criticizes cuts in education, health, and disability, while defending derogations of recent laws. The Government projects 10.4% inflation and 5% GDP growth.

 

 

 

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