Mexicali’s long-term public debt has dropped for 51 straight months under Mayor Norma Bustamante, falling to 881 million pesos (roughly $44 million USD) as of December 31, 2025. The city inherited obligations of 949 million pesos ($47.5 million USD) when Bustamante took office in September 2021, a reduction of about 68 million pesos ($3.4 million USD) over the period.
Data published by Mexico’s Ministry of Finance and Public Credit (SHCP) for the first quarter of 2025 confirmed the trend, showing 14 consecutive quarters of declining municipal debt. Two major credit rating agencies, Fitch Ratings and HR Ratings, have both upgraded the city’s creditworthiness in response.
What the Credit Upgrades Mean
Credit rating upgrades from Fitch and HR Ratings give Mexicali access to better borrowing terms if the city needs to finance future infrastructure projects. A higher rating also signals to investors and bondholders that the municipality is managing its finances responsibly. For a border city of more than one million people, the distinction matters in a national context where many municipalities struggle with rising debt loads.
The Bustamante administration has maintained that the debt was entirely inherited from previous governments. City officials say the reductions have been achieved without cutting essential services or raising taxes on residents.
Where the Savings Are Going
According to municipal reports, funds freed up by lower debt payments have been redirected toward road improvements, trash collection, street lighting, and social programs. These are services that directly affect daily life in Mexicali, where summer temperatures regularly top 115°F and infrastructure maintenance is a constant challenge.
The trend stands in contrast to national fiscal pressures. Mexico’s federal debt has been climbing, with the national government’s total financial obligations approaching the 60% of GDP threshold that economists and international markets consider a warning level. At the municipal level, however, Mexicali’s trajectory has moved in the opposite direction.
Looking Ahead
Bustamante’s current term is scheduled to end in 2024, but the effects of her administration’s debt policy extend into 2025 based on the latest SHCP data. Whether the next administration will maintain the same fiscal discipline remains an open question. For now, 51 months of unbroken debt reduction represents one of the longer streaks among Baja California municipalities in recent memory.
This story was first reported by Jornada BC.