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【Ferro-alloys.com】：A congressional report indicates that Mexico’s public spending on energy in 2021 soared well beyond the approved amount with extraordinary support to national oil company Pemex cited as the primary reason.

The report from the senate’s internal budget oversite body IBD, available in Spanish here, said the government spent 319bn pesos (US$16.3bn) on energy in 2021, or 578% more than was allocated by the lower house in the 2021 budget.

The amount spent was 478% above federal spending on the sector in 2020.

“This variation is mainly due to the higher budget exercise in the items of: investment expenses (other investment) with a variation of 602%, due to the resources allocated to equity contributions for [Pemex]; as well as the 74.8% increase in operating expenses, 15.2% in personnel services and 152% in other spending.”

The net liquid increases granted by the finance ministry to make contributions to Pemex's equity totaled 271bn pesos, the report added, saying this was necessary “to contribute to its strengthening and recovery as directed by president [Andrés López Obrador].”

Of these resources, 205bn pesos went to paying down Pemex debt, while 66.7bn went to support company programs and operations, it added.

• [Editor:Alakay]