Chile's Ministry of Housing and Urbanism (Minvu) told the Budget Directorate (Dipres) that the requested 3% budget cut 'deepens the budgetary deficit' of the ministry. Led by Iván Poduje, the ministry proposes slashing $200.202 million from loans to constructors, without impacting housing subsidies. The move aligns with President José Antonio Kast's fiscal austerity policy.
Minvu replied via an April 10 memo from Undersecretary Natalia Aguilar to Dipres's Circular No. 12 dated March 13. The document states that “this cut deepens the budgetary deficit of the Ministry of Housing and Urbanism, affecting the fulfillment of commitments assumed by the sector”.
The proposed cut targets Subtítulo 32, covering loans from Serviu to constructors for subsidized housing projects. The total is $200.202 million, allocated by region: $30 billion in Metropolitan Region and Los Ríos, $22 billion in Tarapacá, and $20 billion each in Antofagasta and Biobío, among others.
The ministry reports a floating debt of $225.284 million and stresses that subsidies remain untouched, requiring firms to find alternative funding. Iván Poduje has blamed the prior administration under Carlos Montes, stating on March 25 that “97% of the budget is committed by carryover debts from the previous period”.
Ignacio Aravena, researcher at Fundación Piensa, noted the cut will limit Serviu's ability to fund new 2026 projects. Minvu also plans reductions in studies, rentals, and agreements, as Poduje announces a probe into the previous Emergency Housing Plan.
