Chapter 6 delves into debt management strategies in the context of market forces, evaluating the financial responsibility and fiscal discipline of state governments in Mexico. It examines the implementation and impact of the Fiscal Discipline Law, exploring its influence on economic development and fiscal policy. By analyzing institutional, human, and financial resources, the chapter assesses the effectiveness of the legal framework on financial responsibility and fiscal discipline across Mexico's 32 states. Through descriptive statistics and econometric modeling, it identifies key indicators and their impact on state GDP components. Findings suggest that while fiscal rules play a role in the short term, capital budgeting plans are crucial for sustained growth. The chapter proposes a conceptualization of responsible fiscal federalism in Mexico, emphasizing the importance of balancing financial discipline with economic development objectives.