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Economy

Treasury acknowledges that spending in the 2027 Budget rises by 2.7% with the 2026 law

Quiroz admits that spending in the 2027 Budget rises by 2.7% compared to the law approved for 2026, against the 1.5% claimed by the Government.

Álvaro Sáez Ferrer
Álvaro Sáez Ferrer
· 2 min read
AIIllustrative image: calculator and printed spreadsheet on a wooden table with a pen
Illustrative image: calculator and printed spreadsheet on a wooden table with a pen

The Minister of Finance, Jorge Quiroz, admits that spending in the 2027 Budget increases by 2.7% when compared to the law approved for 2026, against the 1.5% defended by the Government. The Chilean economy is expected to grow by less than 1% this year, while the Treasury projects a 3.3% growth for 2027.

The Minister of Finance, Jorge Quiroz, acknowledged this Friday that spending in the 2027 Budget will increase by 2.7% if the comparison is made against the 2026 Budget Law originally approved by Congress, and not against the projected execution for this year, which would show an increase of 1.5%. This clarification was published by Diario Financiero.

The Secretary of State defended using the spending that will actually be executed during 2026 as a reference, because, in his view, it better reflects the real fiscal situation. The Treasury argues that during this year it had to assume legal and pension obligations that were not fully incorporated in the original Budget, which is why it considers it more appropriate to compare 2027 with the actual execution.

The difference between both percentages opened a debate among economists and parliamentarians about the expansive nature of the new accounts. Experts consulted by Diario Financiero estimate that the fiscal impulse could contribute from a few tenths to approximately half a percentage point to the growth of GDP during 2027, depending on how much of the increase is concentrated in public investment.

The discussion becomes relevant after Quiroz acknowledged this Friday that the Chilean economy would grow by less than 1% during 2026, while the Treasury raised its expansion projection for 2027 to 3.3%. The Executive is confident that investment, housing, public works, and measures from the Chile Despega plan will help recover activity and employment, although it will need to defend that the increased spending is compatible with its commitment to fiscal discipline.

This will be one of the main points of discussion when the project begins its detailed parliamentary review.

Álvaro Sáez Ferrer

Written by

Álvaro Sáez Ferrer

Redactor

Economista por ICADE y una de las pocas personas que disfruta leyendo la ley de presupuestos. Cafetero, padre a tiempo completo y azote de la letra pequeña; en Diario Empresas escribe de economía y fiscalidad.

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