At nearly 3.5 trillion pesos, Mexico’s 2011 federal budget promises a bright future for Mexico real estate investments. The government has dedicated increased resources into ongoing improvements of Mexican infrastructure while offering a small deficit which indicates the government’s commitment to financial responsibility. This news bodes well for the real estate market and especially for Mexico investments as improved infrastructure and fiscal responsibility are sure to spur economic growth, specifically in the Mexico real estate market.

The officially approved Expenditure Budget of the Mexican Federation for the Fiscal Year of 2011 is set at just over 3.4 trillion pesos (nearly 300 million USD). Surpassing the previous proposal by nearly 60 billion pesos, the new budget also reallocates 98 billion pesos from increased taxes in the Revenue Act and the Federal Government’s reduced expenditures.

The budget represents moderate spending (with a deficit less than 0.5% of the GDP) while addressing the need to import areas of investment in the country’s economy. Investors in Mexico real estate will be satisfied by the government’s commitment to improving infrastructure through a controlled spending program. Improvements in infrastructure are sure to draw tourism while bolstering property values.

Furthermore, the 2011 budget allocates nearly 240 billion pesos for the payment of public debt, 18.3 billion pesos for the marina, 35.5 billion pesos for the Ministry of Public Security, and around 50 billion pesos for National Defence. The Ministries of Economy, Public Education, Health, and Labour and Social Welfare were also allocated 16.5 billion, 23 billion, 105.5 billion, and 3.7 billion pesos respectively. Finally, the Ministry of Energy was budgeted approximately 3 billion pesos while Social Development received in excess of 80 billion pesos. Spending in these areas points to a dedicated effort to improve the standard of living throughout Mexico, as well as the governments desire to increase social stability while confronting social problems. Investment in expat regions will surely improve services and facilities and to maintain the generally safe and strong community atmospheres that already exist.

More importantly, tourism in Mexico will benefit from an unprecedented budget of nearly 5 billion pesos, clearly reflecting the government’s dedication to developing one of its major industries. Real estate buyers will subsequently benefit from tourism spending as improvements in roads, activities, and shopping are directly related to Mexico’s tourism industry.

In short, the 2011 federal budget reflects balanced spending in socially relevant areas that will likely lead to improvements in standard of living and investment in industry which will undoubtedly generate economic growth that benefits Mexicans and Canadian and American expats alike. Clearly, with this new budget the government is proving their dedication to making Mexico a safer, more liveable country. The direct impacts on Mexico real estate may not be seen immediately but especially for buyers interested in Mexico investments, country wide improvements in infrastructure, education, health, and energy will certainly generate increased property values. Furthermore, these improvements are sure to drive tourism which will provide even more Mexico real estate investment opportunities.