Queretaro’s debt is the lowest in the country

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Querétaro remains number one with the lowest public debt and obligations on freely available income by showing 6.9 percent against the rest of the federal entities that show some degree of indebtedness.

The above, according to an evaluation of the first quarter of the year by the Center for Public Finance Studies (CEFP), which reflects the situation of each state in relation to the Results of the Alert Systems of the Federal Entities in the first quarter of 2024.

In terms of debt level, all federal entities have the “Sustainable” concept, including Querétaro, with the exception of Coahuila which is “Under Observation”. Tlaxcala does not appear as it has no record of financing.

Regarding this entity, Querétaro appears with 6.9 percent in Indicator number 1 that reflects Public Debt and Obligations on Freely Available Income, which refers to a Low Range.

Indicator 2 establishes that the state has 0.9 percent in Debt Service and Obligations on Freely Available Income, which places it with a Low Rank in the Alert System.

No credit risk, “it is for development”

With regard to Indicator 3, Querétaro has -14.5 percent in Short-Term Obligations and Suppliers and Contractors on Total Income, which also allows it to have a Low Risk Rank in its indebtedness.

The evaluation mentions that the alert system is an instrument for evaluating the level of indebtedness of public entities (federal entities, municipalities and public entities of both levels of government) that have contracted financing and obligations with a source or guarantee of payment of freely available income.

It adds that, in the case of federal entities, the evaluations are applied quarterly and annually, where for the latter case it uses information from Public Accounts. The first ones have a purely informative and monitoring character, while the second one has a binding character on the financing ceiling that the federative entities will be able to access. This document shows the results of the evaluation for the first quarter of 2024.

The Center for Public Finance Studies indicates that, as of March 31, 2024, the majority of the federative entities, in this case 30 of 31 (except Tlaxcala, which does not register financing) present a level of Sustainable Indebtedness.

Due to their low level of indicator 1, the cases of Querétaro (6.9%), Hidalgo (13.2%) and Tabasco (13.8%) stand out. Only one federative entity presents a level of Indebtedness under Observation. The corresponding entity is the state of Coahuila. No federative entity presents a level of High Indebtedness.

Source: diariodequeretaro