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During the twentieth century, Mexican federalism was characterized by a centralization of power in the hands of the federal government. Since the 1980s, different decentralization processes gradually increased the political influence and income of states, as well as their participation in social policymaking. However, the effects of decentralization on social spending at the state level has scarcely been analyzed in Mexico. The purpose of this study is to analyze the evolution and characteristics of social spending at the state level in Mexico from 2000 to 2018. This analysis uses data from state public accounts of the 31 states and Mexico City. On average, state social expenditure per capita increased in the last two decades, but at a slower rate than overall state expenditure. Furthermore, education, the biggest share of total social expenditure, and healthcare both grew steadily, while other forms of social spending grew in more varying rates over time.

Social spending at the state-level in the neoliberal era: A renaissance of federalism in Mexico?