Treasury cuts $17.581 million from Viña del Mar reconstruction fund

Chile's Ministry of Hacienda sent a decree to the Comptroller General to cut $17.581 million from the Transient Emergency Fund for reconstruction after the Viña del Mar fires. The cut equals 3.5% of the $502.069 million budgeted for this year. It is part of a larger $150.379 million reduction in public treasury spending.

On April 24, the Ministry of Hacienda submitted a decree to the Comptroller General of the Republic for $150.379 million cuts in the public treasury. The adjustments target two main programs: Complementary Operations by $92.082 million and Subsidies by $58.280 million.

The most notable cut affects the Transient Emergency Fund, established to cover costs from the February 2024 fires in the Valparaíso region, including Viña del Mar. The law allocated $502.069 million for this year, from which Hacienda proposes to reduce $17.581 million, or 3.5% of the total. Earlier, in January and February, $82.000 million was transferred to the ministries of Housing and Social Development for execution.

Other reductions include $490 million to the National Institute of Human Rights (3% of its annual budget), $262 million to the Council for Transparency, $213 million to Environmental Courts, and $155 million to the Children's Rights Ombudsman. Further cuts are $30 million to the Autonomous Fiscal Council and $600 million to the simplified refund program for exporters.

The decree also adjusts potentially already executed items, such as bonuses for polling station officials and permanent contributions to political parties.

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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.

The Chilean government submitted a bill to Congress to raise up to USD 1.35 billion for rebuilding homes and infrastructure damaged by 2026 wildfires in Ñuble and Biobío. The plan mixes direct fiscal spending, tax incentives, and private investment attraction, without permanent tax hikes. Mayors from affected areas call for swift approval, while facing criticism from Valparaíso.

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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.

Colombia's Contraloría General de la República reported that Decree 0150 of 2026, declaring an economic emergency in February due to the climate crisis, lacks solid calculation bases for requesting between $8.26 and $8.68 trillion pesos. The oversight body identified discrepancies in damage estimates, such as flooded areas, and the absence of a national articulated plan. This review responds to a request from the Constitutional Court.

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Chile's Chamber of Deputies ended an eight-hour debate yesterday on the National Reconstruction Plan bill. The government-backed initiative aims to cut corporate taxes and provide investment certainty.

The Senate Health Commission agreed to reject the 2.5% budget cut to the Ministry of Health. Subsecretary Julio Montt defended efficiency measures before senators and unions.

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President José Antonio Kast's government presented its National Reconstruction Project to Congress, featuring about 40 measures to boost growth, including a corporate tax cut from 27% to 23% and tax reintegration. Ministers toured regions on Friday to defend the bill, as OTIC and IMF warn of labor and fiscal risks. A poll shows 54% believe Congress should approve it.

 

 

 

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