Senator and Socialist Party (PS) President Paulina Vodanovic criticized this Saturday the reduction in funding for regional governments included in the 2027 Budget bill. She announced that she would seek support across political groups to reverse it as the bill moves through Congress.
According to La Tercera, the proposal from President José Antonio Kast's government reduces the total budget for regional governments by 4.8%. According to figures from the Budget Directorate (Dipres), that amounts to approximately $90 billion less than in 2026.
Vodanovic outlined her position in the subcommittee examining the regional budget. "We have said again that the regions cannot suffer reductions in their revenues," she stated.
The senator linked the discussion to decentralization. "We must seek the greatest possible unity here so that it is understood that decentralization requires sufficient resources in each of the regions," she added.
Her main concern is the Maule Region, which she represents in the Senate. "In Maule, the plan is to cut more than $8 billion from the Regional Government, and we cannot allow that," she said. According to regional news outlet G5 Noticias, the reduction would affect that region's implementation and investment funding for 2027.
The senator detailed her strategy. "As a senator for Maule, I will seek support across the political spectrum so that the government changes this bad decision," she maintained.
The discontent extends to other regions. The Association of Regional Governors of Chile (Agorechi) warned that cuts could reach between 10% and 20% in some regions, depending on the comparison baseline used. The governors fear effects on infrastructure projects, security, employment and social programs.
Agorechi President and Valparaíso Governor Rodrigo Mundaca told the fourth joint budget subcommittee that the governors have "many disagreements" with Dipres. He said the proposal "worsens unemployment in Chile" and that all regional governors oppose it.
The available sources do not include a response from the executive branch to these criticisms. The regional governments' budget allocation remains under review in the joint subcommittee, and any change will depend on the votes that lawmakers critical of the proposal can gather during the budget debate.
