Finance ministry suggests adjusting or discontinuing 402 budget programs

Chile's Finance Ministry, under Jorge Quiroz, recommended reviewing 402 programs for the 2027 budget, with 37% in Education, Social Development, and Health. Officials insist no social rights will be cut, aiming for spending efficiency. Responses followed the leak of internal memos sparking criticism.

Finance Minister Jorge Quiroz sent memos to all ministries outlining the 2027 budget guidelines, proposing to discontinue 142 programs and cut at least 15% from the budget of 260 others. These are based on evaluations from the Commission for Structural Spending Reforms and monitoring systems, labeling programs as "conditioned".

Education (57 programs: 42 adjustments, 15 discontinuations), Social Development (47: 34 adjustments, 13 discontinuations), and Health (46: 21 adjustments, 25 discontinuations) hold 37.3% of the 402 programs under review. Notable ones include Junaeb's School Feeding Program (PAE), Bicentennial High Schools facing a suggested 15% cut, and the Universal Guaranteed Pension (PGU).

Junaeb director Fernando Peña stated the PAE "will continue its operation, there will be no interruption". President José Antonio Kast stressed: "We said we would not cut people's rights and we will not, but we do have to put the house in order".

Quiroz clarified: "No social benefit to the population will be touched here, none at all. The only thing we are doing is seeking efficiency and preventing waste". Social Development confirmed a 2.24% cut ($32.721 million), without setbacks to rights, impacting child, indigenous, and youth programs.

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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.

Chile's Finance Minister Jorge Quiroz clarified on Friday that there will be no cuts to school feeding programs or scholarships, following controversy over a memo suggesting the discontinuation of 15 Ministry of Education programs for the 2027 budget. The document, dated April 21, is part of the initial budget formulation process and does not represent a final decision, according to the minister. Opposition figures and right-wing voices criticized the suggestion, particularly regarding the School Feeding Program.

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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 Centro de Estudios Públicos (CEP) assessed Finance Minister Jorge Quiroz's three key goals for the José Antonio Kast administration: 4% growth, 6% unemployment, and fiscal balance by term's end. Researchers Rodrigo Vergara and Jorge Rodríguez call them ambitious yet feasible, citing past achievements.

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In the 'QR!' program on Canal E, experts analyzed the government's university funding project and compared it to the current law. Germán Pinazo, vice-rector of the Universidad Nacional de General Sarmiento, stated that the executive is breaching an existing regulation backed by the judiciary. The discussion highlighted budgetary obligations and effects on salaries and scholarships.

German Finance Minister Lars Klingbeil (SPD) detailed specific savings targets for the 2027 federal budget at a press conference in Berlin. The measures aim to close a 111 billion euro financing gap. The largest cuts target pensions at four billion euros.

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Dario Durigan, executive secretary of the Ministry of Finance, directs to anticipate a stricter expense block in the 2026 Budget to address pressures from reducing the INSS queue. This aims to signal realistic public accounts management in an election year. Analysts estimate a block between R$ 6 billion and R$ 10 billion to meet the fiscal target.

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