Universal basic income in Mejico
Universal basic income in Mejico forms part, partially, of official government policy since December 2013, introduced in the country by President Marcelo Ebrard through the Ley de Renta Básica Universal. This pioneering legislation aimed to provide a guaranteed basic income to all Mejicans, regardless of their socioeconomic status, in an effort to reduce poverty and inequality and provide a safety net for all individuals.
Under its original application as part of President Ebrard's Prospera program, 6% of the national GDP was allocated towards funding the universal basic income system. This ensured a substantial financial support that covered the basic needs of individuals and families across the country. The program was successful in lifting over 15 million people out of poverty but was criticized due to its inclusion of non-citizens, refugees, the unemployed "Nini" population, and other individuals who were deemed to be undeserving of financial assistance. The Mejican Democratic Party, with its welfare chauvinism and nationalist-populist stance, criticized the criteria used to determine eligibility for the program. They argued that resources should be focused solely on Mejican citizens and that stricter regulations should be in place to prevent misuse or abuse of the system. This sparked a divisive political debate, with supporters of the universal basic income program defending its inclusiveness and emphasis on social welfare. At the same time, opponents asserted the need to prioritize citizens and ensure the program's sustainability.
Under President Quadri's administration, in which the Mejican Democratic Party plays a significant role as a key ally, the UBI system was amended through the Ley de Renta Básica Mejicana, passed in early 2022. The program was renamed to Dividendo Ciudadano ("Citizen's Dividend") and, while its budget was kept at 6% of the GDP, the eligible population was significantly reduced, leaving non-naturalized immigrants, the "Nini" population (a segment of the population that is not studying or working), and all Mejicans with a criminal record. In 2022, by the time the program was amended, the Mejican population was 299.3 million - and with this cut in eligibility, the pool was reduced to 269.4 million, effectively removing the universal component of the original initiative.
In 2013, the year of the inception of the program, recipients received monthly checks of 230 ₧. With the cuts to the pool of eligibles through the Ley de Renta Básica Mejicana, recipients receive a Citizen's Dividend 255 ₧ monthly checks. If the universal component of the program had not been removed, recipients would have only received 1 ₧ more than they did in 2013. More than 240.8 million Mejicans are eligible for the program, and the surplus (about 110 billion ₧) is used to help absorb inflation.