President Lee Jae Myung was set to preside over a Cabinet meeting on Tuesday to review and approve the government's budget proposal for next year. ^[1] The Lee government is seeking to draw up a budget exceeding 800 trillion won (US$584.1 billion) for next year, up 10 percent or more from this year. ^[2] President Claudia Sheinbaum Pardo presented her second government report on September 1, 2026, at the Patio de Honor of Palacio Nacional. ^[3] By law, the government is required to submit its budget proposal to the National Assembly at least 120 days before the start of next year, making Thursday this year's deadline. ^[4] The budget increase is amid expectations of increased tax revenue stemming from a semiconductor boom. ^[5] Sheinbaum aims to reduce privileges, combat corruption, and direct public spending toward social programs, infrastructure, and services. ^[6] Sheinbaum stated that her government is transforming the public life of Mexico with the goal of bringing well-being to all citizens. ^[7] The administration governs under the principles of honesty and republican austerity, prioritizing public resources for the population. ^[8]