President prioritizes funding for Mexico’s poorest citizens, despite overall decrease in government funds

In Mexico City, President Andrés Manuel López Obrador’s social programs have sparked controversy as they have shifted the distribution of government funds, benefiting some of Mexico’s wealthiest citizens while leaving the poorest with less support.

López Obrador’s administration introduced a “universal” pension benefit for seniors, doubling and then doubling again the federal pension, regardless of income. This move expanded the program to include people who previously did not qualify, such as those receiving pensions from former employers.

Critics argue that universal programs spread benefits thinly across the population, resulting in those most in need receiving less support. Robert Greenstein, a fellow at the Brookings Institution, warns that poverty could increase and inequality worsen under such schemes.

Despite the criticisms, López Obrador’s social programs have proven popular, with even opposition candidates promising to expand them. The pension is the largest social program in López Obrador’s slate of handouts, surpassing other well-known programs like Youth Building the Future and Sowing Life.

However, the shift from targeted programs to universal ones has led to a significant change in the distribution of government funds. While millions have escaped poverty under López Obrador’s term, there are still concerns about the effectiveness and sustainability of these programs.

As the debate over social programs continues in Mexico, the future of these initiatives remains uncertain. Critics warn of potential fiscal challenges ahead, while supporters argue that the programs are essential for addressing inequality and poverty in the country.