SovereignWealthFunds.comBudgetary Income Stabilization Fund
Budgetary Income Stabilization Fund: what it invests in
Geography Mainly domestic
Budgetary Income Stabilization Fund: how big it is, and on what basis
In US dollars: about USD 7.82B. Converted at MXN 17.468 per US dollar, the ECB reference rate for 30 June 2026.
Budgetary Income Stabilization Fund: what it publishes
Published 4 · Partly 3 · Not published 3
Our 10 item score. It measures what is public, not how well a fund is run.
At a glance. The FEIP is Mexico's federal budget reserve. It pays the government when revenue falls short of the amount set in the annual Revenue Law, smoothing spending through the cycle. It is a public trust run by NAFIN and invested in liquid, low-risk assets. The balance was MXN 136,604 million at 30 June 2026, about USD 7.8 billion. S3 S5 S6
Key points
- Balance rose 21.8 percent in a year to MXN 136,604 million at end June 2026. S5
- Took in MXN 9,646 million in the first half of 2026: MXN 5,118 million from the Mexican Petroleum Fund and MXN 4,528 million of income. S5
- Can be spent only to cover revenue shortfalls and the cost of federal hedging. S3
- A March 2024 reform added debt cost savings and federal asset contributions as funding sources. S4
- A Technical Committee of three finance undersecretaries sets a passive, high-liquidity policy. S3
- Reported quarterly to Congress and audited by the Superior Audit Office of the Federation. S3 S1
Interesting facts
Mandate and goals
Under article 21 Bis of the Budget and Fiscal Responsibility Law the fund softens the effect on public spending when federal revenue falls below the Revenue Law amount. It saves in good years and pays out in bad ones. S3
How it invests
| Industries | . Sector agnostic S3 |
|---|---|
| Asset classes | Cash and money markets, Fixed income S3 |
| Stages | Public markets S3 |
| Geography | Mainly domestic. Mexican pesos and, at the committee's discretion, other currencies S3 |
| Direct / through funds / co-invest | Yes / No / No S3 |
| Managed in house | 100 percent S3 |
| Ticket size | Not applicable; the fund holds liquid reserves. S3 |
| External managers | No external managers. S3 |
| Co-investment programme | No co-investment. S3 |
Past investments
| Year | Investment | Type | Sector | Stage | Amount |
|---|---|---|---|---|---|
| 2026 | Transfer from the Mexican Petroleum Fund. Oil revenue transfer received in the first half of 2026. S5 | State asset transfer | Energy: oil and gas | Not stated | MXN 5,118M |
| 2026 | Financial income. Interest earned on the liquid portfolio in the first half of 2026. S5 | State asset transfer | Financial services | Public markets | MXN 4,528M |
Case studies
2019: the reserve at work S4
- What: Drew more than 96 percent of the fund to offset federal revenue shortfalls.
- When: 2019
- Size: From a MXN 246,690M peak in 2018
- Why: This is the purpose set by law: protect spending when revenue falls short.
- Outcome: The balance has since been rebuilt to MXN 136,604M by June 2026.
2024 reform: new sources of money S4
- What: Congress widened the funding sources in the budget law.
- When: March 2024
- Size: Not published
- Why: To rebuild the reserve beyond oil revenue and surpluses.
- Outcome: Debt cost savings and federal asset contributions can now flow in.
Investment process
A Technical Committee of three Ministry of Finance undersecretaries sets investment guidelines and the currency mix. NAFIN as trustee carries them out through TESOFE. The Economic Planning Unit oversees use of the money. S3
| Committee | Role |
|---|---|
| Technical Committee | Three undersecretaries; sets guidelines, limits and currency composition S3 |
- Revenue falls short of the Revenue Law amount. S3
- The Ministry draws on the fund to cover the gap, under the operating rules. S3
- NAFIN reports monthly to the Ministry; the Ministry reports quarterly to Congress. S3
How to approach: The fund takes no outside proposals. The IFSWF profile lists a Ministry contact address in Mexico City. S1
Size and returns
- Headline size: MXN 136.6B (Fund market value, as of 2026-08-16) S5 S6
- In US dollars: about USD 7.82B. Converted at MXN 17.468 per US dollar, the ECB reference rate for 30 June 2026.
- Peak balance (2018): MXN 246,690M (Fund market value, as of 2026-08-14) S4
- Returns: the fund does not publish a return figure.
- Size over time (MXN billion): 2018 246.69, 2026-06 136.604 S4 S5
Leadership
Governance and transparency
- Legal basis: Budget and Fiscal Responsibility Law (articles 19, 19 Bis, 21, 21 Bis and 87), FEIP operating rules and trust contract S3
- Oversight: Ministry of Finance, Congress through quarterly reports, and the Superior Audit Office of the Federation S3 S1
- Auditor: External auditor on IFRS statements; Superior Audit Office of the Federation S3 S1
- Santiago Principles: IFSWF full member with a 2025 self-assessment S2 S3
- Officials are bound by the federal law on public officers' liabilities. S3
Transparency score: 5.5 of 10 (band 3 of 5). Our own 10-item rubric; see the methodology page.
History
For family offices
The fund is a liquid budget reserve with no private investment activity and no programmes for outside investors. S3 S1
Reports
- Santiago Principles self-assessment 2025: https://www.ifswf.org/assessment/bisf-2025 S3
- SHCP quarterly public finance reports: https://www.gob.mx/shcp S9
Common questions
How large is the FEIP?
MXN 136,604 million at 30 June 2026, about USD 7.8 billion. S5
Who runs it?
The Ministry of Finance is settlor, NAFIN is trustee and a Technical Committee of three undersecretaries sets policy. S3
What feeds it?
Shares of oil revenue and surpluses, part of the central bank remainder, debt cost savings and federal contributions. S3 S4
What can it be spent on?
Only revenue shortfalls against the budget and the cost of federal hedging. S3
Is it an IFSWF member?
Yes, a full member, listed as the Budgetary Income Stabilization Fund. S2
Related profiles
- Heritage and Stabilisation Fund (Trinidad and Tobago) Trinidad and Tobago · USD 6.25B
- Savings and Stabilization Fund (FAE), Colombia Colombia · USD 4,588.5M
- Economic and Social Stabilization Fund (FEES), Chile Chile · USD 3,885.14M
- Fiscal Stabilization Fund of Peru Peru · USD 3,214.38M
- Macroeconomic Stabilization Fund of Venezuela Venezuela · USD 3M
- Pension Reserve Fund (Fondo de Reserva de Pensiones) Chile · USD 10.71B
All sovereign wealth funds in Latin America and Caribbean · All stabilisation funds · All funds in Mexico
Sources
- S1IFSWF, FEIP member profile
- S2IFSWF, members list
- S3IFSWF, BISF Santiago Principles self-assessment 2025
- S4Expansion, Mexico anti-crisis funds 55 percent below peaks (Spanish)
- S5El Economista, government reserve fund still below pre-pandemic levels (Spanish)
- S6Frankfurter, ECB reference rates for 30 June 2026
- S7SHCP, Edgar Amador Zamora profile
- S8La Razon, Finance Secretary before the Chamber of Deputies (Spanish)
- S9Ministry of Finance and Public Credit (SHCP), portal
Disclaimer
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