From Fiscal Rule to Financial Engineering: The Ministry of Finance's Silent Shift in Public Accounts Management
Public spending remains a risk front for the country. Photo: Image generated with artificial intelligence.
TL;DR
- The Ministry of Finance has expanded public debt issuance beyond legal limits through financial engineering, particularly by exchanging short-term credit titles (TCO) for long-term treasury securities (TES).
- In 2025, this strategy allowed the issuance of TES totaling approximately $111 trillion, exceeding the legal limit of $95.8 trillion.
- Tax revenues in 2025 were insufficient, missing the official target by $8.4 trillion, while primary spending reached a historic high.
- These factors have contributed to a projected deficit of -6.6% of GDP for the Central National Government and a primary deficit of -3.7% of GDP.
- The extensive use of Debt Management Operations (OMD) has reached record levels, distorting the TES market and complicating interest rate normalization.