Following Finance Minister Jorge Quiroz's memos sparking controversy over 2027 budget reviews, Chile's Ministry of Social Development and Family (Midesof) announced a 2.24% cut—equivalent to about $36.6 million (CLP 36.6 billion) from its total budget—below the 3% target. The adjustments target inefficiencies while protecting social benefits, as defended by President José Antonio Kast amid backlash.
Chile's Ministry of Social Development and Family (Midesof), under Minister María Jesús Wulf, detailed its budget reductions in compliance with the government's austerity push outlined in Hacienda's recent memos, which proposed reviewing or cutting 402 programs.
The cuts adhere to four criteria: correcting over-resourced programs, reducing administrative inefficiencies, rationalizing low-impact funds, and adjusting to demand changes, plus institutional restructuring to eliminate duplications.
"Our priority is clear: we will not touch social benefits. We are streamlining spending so the state reaches people better, faster, and with greater impact," said Undersecretary of Social Services Alejandro Fernández.
Specific reductions include: a CLP 12.748 million (23.64%) cut to the National Protection Service's Specialized Clinical Diagnosis program due to 42% fewer judicial referrals; 10.5% from the Newborn Support Program 'Ajuar' while maintaining core services; CLP 7.634 million (8.21%) from Conadi's Indigenous Lands and Waters Fund owing to under-execution; and the largest, CLP 3.859 million (47.69%) from the National Youth Institute (Injuv), which serves only 0.7% of youth with high personnel costs. Injuv will be redesigned as a technical entity for evidence and coordination.
