Ministries resist 3% budget cut pushed by treasury

Several Chilean government ministries are resisting the 3% budget cut ordered by the Treasury Ministry, following the exemption granted to Public Security. President José Antonio Kast admitted evaluating case-by-case exceptions, while portfolios like Education and Social Development argue a lack of room. Negotiations continue amid tensions.

The government exempted the Ministry of Security from the 3% cut after finding it would slash police funding by 64% under the Plan Against Organized Crime. This move, defended by President José Antonio Kast in an interview with ARCHI-affiliated stations on Tuesday, paved the way for potential exceptions in other portfolios.

Kast stated: “We're seeing everyone carry out the cut exercise and, once that's clear, how to establish it, how to present it, we'll see where the cut takes effect and where not.” While stressing the 3% applies evenly, he acknowledged case-by-case reviews.

Treasury Minister Jorge Quiroz and the Budget Directorate are holding bilateral meetings with each ministry. Education officials say there's no real margin, as much of the budget is tied to permanent laws. The minister previously told T13 Radio: “When one talks about cuts, the reality is that Education's budget was already cut [...] Permanent laws were cut.”

Social Development offers a 2.5% adjustment to protect social programs. Housing Minister Iván Poduje noted 97% of the budget is committed to prior debts. Health is reviewing efficiencies to safeguard patients, per Minister May Chomali.

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Protesters rally against Chile's proposed 2027 budget cuts to 142 social programs outside government buildings.
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Hacienda details 142 social programs for discontinuation in 2027 budget amid backlash

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Following initial controversy over education cuts outlined in Hacienda's April 21 memo, Chile's Treasury revealed the full scope: urging 22 ministries to eliminate 142 social programs and cut 260 others for $6 billion in savings in the 2027 budget. The proposal, tied to Finance Minister Jorge Quiroz's tax reform push emphasizing full employment as the ideal social policy, has drawn sharp criticism from scientists, unions, and opposition leaders.

President José Antonio Kast said in his first radio interview from La Moneda that exceptions will be evaluated case by case in the 3% budget cuts ordered by Hacienda to ministries. He confirmed analyzing salary reductions for executive authorities amid the fuel price crisis. He also backed questioned ministers and defended his emergency government's priorities.

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The Chilean executive presented to the Chamber's Security Commission a proposal to cut $72.669 billion from the Ministry of Security's budget, meeting Hacienda's 3% requirement. The measure mainly affects Carabineros and PDI, drawing cross-party criticism in Congress for inconsistency with the 'emergency government' narrative. Officials assure it won't impact sensitive areas.

José Antonio Kast's government will present a miscellaneous bill on Wednesday with over 40 measures, including a phased corporate tax cut from 27% to 23% between 2028 and 2030. The reduction will occur over three years: 1.5 points the first year, 1.5 the second, and 1 the third. Finance Minister Jorge Quiroz defended the measure as a boost to investment and employment.

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Ten days have passed since José Antonio Kast assumed Chile's presidency, marked by high activity in security, economy, and education. The government has prioritized police actions, housing reconstruction, and fiscal adjustments. Key ministers lead coordinated initiatives under a 'Hub' model.

José Antonio Kast's government held its first expanded political committee on Monday at La Moneda, where Segpres Minister José García announced urgencies for 20 bills, mainly on security and migration. Three initiatives received immediate discussion, including classifying irregular entry as a crime. The announcement comes amid internal criticisms over possible pardons and limits to free higher education.

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President José Antonio Kast's government has delayed entry of its controversial 'National Reconstruction Plan'—recently renamed the 'economic reactivation reform'—into Congress until next week. Initially announced in March with an expected April 1 entry, the postponement allows final reviews and shifts focus to school security following a deadly incident in Calama.

 

 

 

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