The Federal Expenditure Budget (PEF, by its name in Spanish) establishes the provisions for the exercise, control and evaluation of federal public spending, as well as the accounting and presentation of the corresponding financial information.
The PEF has two large sections, the Programmable Expenditure, which is intended to provide public goods and services to the population, and the Non-Programmable Expenditure, destined to the fulfillment of acquired obligations and support determined by the Law.
Regarding Programmable Expenditure, there are 3 ways to understand it:
1. Functional Distribution: serves to answer the question, what is it spent for? and corresponds to the presentation of expenditure according to the socio-economic purposes or objectives pursued by the different public entities.
2. Economic Distribution: helps to answer the question, what is it spent on? and presents the expense by its economic nature, whether current or investment.
3. Administrative Distribution: it allows to answer the question, who spends?, presenting the expenditure according to each one of the agencies and public entities to facilitate the management and control of resources.