Finance Minister Jorge Quiroz offered to review "each point" of the 2027 Budget bill, according to El Mostrador. He made the proposal at the expanded Political Committee meeting, following complaints from governing coalition parties about the lack of prior coordination on the allocation of funds. According to the same outlet, any budget item can change if there is evidence to justify it.
The situation differs from the one he faced with the sweeping economic reform known as the Miscellaneous Law. During that legislative process, the governing coalition voted together, and the Ministry of Finance could focus on securing opposition votes. Now, according to El Mostrador, Quiroz must retain his own support while also securing the votes he still needs.
Internal objections focus on specific cuts. Governing coalition lawmakers called for a review of the elimination of funding for "Yo elijo mi PC", a 47% cut to Bicentennial High Schools, a cut of around 10% to Culture and more than 25% to Sites of Memory. The president of National Renewal (RN), Andrea Balladares, said spending reductions must not affect social rights.
The People's Party (PDG) is adding further pressure. Its leader, Franco Parisi, demanded that the government show where the US$6,000 million in savings José Antonio Kast pledged during his campaign for his first 18 months appears. He also asked how much debt will increase and why the highest public sector salaries have not been significantly reduced.
The Ministry of Finance responds that this figure represents projected savings rather than a nominal reduction in current spending. However, the ministry will have to disclose the baseline and methodology it used to calculate it.
Regional governors also questioned the bill. They complained about a reduction of nearly 6% in their budgets and warned that lower regional investment could hurt employment. Senators from the Christian Democratic Party (DC), meanwhile, consider the 1.5% spending increase insufficient given rising costs at hospitals, municipalities and public services.
The economy is not helping either. Quiroz arrives in Congress with a negative Imacec (Monthly Economic Activity Index), unemployment of 9.6% and growth prospects below those he presented months earlier.
The next milestone is the Public Finance Report. That document will have to specify projections for growth, debt, the deficit and revenue, and explain the calculation of the US$6,000 million. This will determine how much of the original bill the Ministry of Finance is willing to modify to build a majority.
