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Michoacán Legislature Bars Long-Term State Debt in Constitutional Reform

The amendment ties any state borrowing to strict fiscal principles that prevent obligations extending past a single term.

Overview

  • Lawmakers approved additions to Article 44, fraction XII, requiring any state financing to meet responsibility, sustainability and transparency standards and to be fully amortized within the sitting administration.
  • The measure targets transexenal debt and was advanced by Governor Alfredo Ramírez Bedolla after documenting decades of rising liabilities and heavy debt-service costs.
  • Only one vote against was reported, from the Movimiento Ciudadano bench, with Morena, PT and PVEM backing the change.
  • Officials cited a 640% rise in state debt over 25 years, a 682.18% increase from 1993–2024, and more than 6,300 million pesos paid in 2025 to service inherited obligations.
  • The state Finance Secretariat said the reform will support sustained budget balance, strengthen financial confidence and prioritize productive investment, while municipalities retain financial autonomy under the change.