Mexico’s 2026 ICT budget declines 1.9% to MX$33.4 billion, extending fiscal tightening that constrains digitalization, science, and research capacity under Claudia Sheinbaum’s administration. Cuts to ICT services and software contrast with private-sector cloud growth, increasing risks of technological obsolescence across federal agencies, research centers, and universities. The shift toward lower public investment affects telecom providers, software vendors, research institutions, and policymakers navigating competitiveness, cybersecurity, and innovation goals.
The federal budget for Information and Communication Technologies (ICT) for 2026 totals MX$33.395 billion (US$1.945 billion), representing a 1.9% annual decrease. This adjustment marks the second consecutive year of fiscal contraction, pressuring the digitalization agenda of the administration of President Claudia Sheinbaum.
“Budget cuts do not align with the large strategy of the Agency of Digital Transformation and Telecommunications (ATDT), including digital identity projects; therefore, they will likely be financed through other budget lines,” says Ricardo Zermeño, General Director, Select.
The 2026 Project of the Federation Expenditures Budget (PPEF 2026) reflects a tightening of public spending, characterized by a deficit of MX$1 trillion, says Nexos. Within this fiscal framework, the government has prioritized social welfare programs, the Ministry of Energy, and PEMEX.
Conversely, cross-cutting sectors for national competitiveness, such as science and technology, face reductions in real terms. Globally, the Law of Science and Technology required a national investment of at least 1% of the gross domestic product (GDP). However, the new Sectoral Program for Science, Humanities, Technology and Innovation (PSCHTI) targets a more modest 0.53% of the GDP by 2030.
This policy shift reduces government obligations to foster private investment and removes the requirement to measure such investment, which complicates the tracking of national technological progress.
Distribution and Erosion of the ICT Budget
According to research by Select, the distribution of the ICT budget for 2026 centers on three primary pillars: ICT services at 40%, telecommunications at 38%, and equipment at 18%. Despite being the largest category, ICT services face a reduction of 6%. This cut directly impacts the operational capacity and maintenance of existing government infrastructure.
In relative terms, the software segment faces the most significant decline, with a drop of 47%. This adjustment suggests a pause in the acquisition of new licenses and a potential shift toward in-house development to mitigate fiscal restrictions. Arely Reyes Gaspar, Analyst, Select, says that while software shows the deepest relative decrease, the reduction in ICT services carries a larger absolute weight because it represents 40% of the total technology allocation. The federal strategy appears to prioritize maintaining basic connectivity and consumable supplies over the modernization of information systems.
The contraction of public spending in technology occurs while the private ICT market in Mexico experiences growth. In 2025, ICT services reached a cumulative billing of MX$215.000 billion, a 9.7% annual increase. Within this sector, on-demand consumption models showed superior dynamics:
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Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) grew 20%
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Software as a Service (SaaS) increased 15%
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Consultancy and operation services advanced 6%
The gap between public investment and private market trends poses a risk of technical obsolescence for federal agencies. While the industry adopts cloud computing as a driver of efficiency, the federal government faces the pressure to ensure cybersecurity and the continuity of shared services with fewer resources. Reyes says that visibility is limited to published line items, meaning that some efforts, such as the supercomputing project, may remain dispersed across other budget categories.
Impact on Research and Strategic Programs
Since 2013, 19 of the 24 the Public Research Centers have experienced budget decreases ranging from 2.39% to 34.35%.
Within the substantive programs of the Ministry of Science, Humanities, Technology, and Innovation (SECIHTI), results are inconsistent:
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Graduate Scholarships and the National System of Researchers (SNII): These programs will receive a nominal increase of 4% in 2026. This increase does not compensate for a deficit that has existed for nearly 10 years and currently exceeds 30% of the cost of the program.
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National Strategic Programs (PRONACES): This program, which replaced the previous system of research funds and trusts, faces the most drastic reduction within the ministry, with a 47% cut compared to 2025. In 2025, the program supported 1,467 projects with MX$2.45 billion. The 2026 reduction jeopardizes the funding for subsequent stages of these projects and limits the issuance of new calls for research.
To address fiscal restrictions, the federal government intends to strengthen internal capabilities. Zermeño says that initiatives such as a software factory could improve internal development and promote shared services, particularly for data centers serving federal and local agencies. However, the success of this model depends on the ability to attract specialized talent in a competitive market and the availability of high-performance computing infrastructure.