Regional governors rejected the allocation assigned to them under the 2027 Budget Law. According to BioBioChile, they allege that each region would face cuts of between 10% and 20%. They also argued that President José Antonio Kast is not committed to decentralization.
The discussion took place in the fourth joint budget subcommittee, comprising deputies and senators. There, each governor detailed how the cuts would affect their security, childhood and employment programs. The source does not provide a breakdown of figures by region.
The overall assessment was negative. The subcommittee therefore postponed the vote. This pause will give the government time to negotiate with the Association of Regional Governors of Chile.
Deputy Juan Marcelo Valenzuela, of the People's Party (PDG), explained the decision. He warned that the allocation could still be rejected if the executive branch does not present an offer that convinces governors and lawmakers. "We don't want to reject it for the sake of rejecting it," he said, adding that rejection remains an option without concrete answers.
Rodrigo Mundaca, governor of Valparaíso and vice president of the association, was more forceful. In his view, the cut could produce effects contrary to those sought by the executive branch. "It is a proposal that does not address security, employment or growth," Mundaca said, adding that all governors oppose it.
The BioBioChile report does not include an official government response to these criticisms. Other recent coverage indicates that the executive branch defended a 4.8% cut to regions and that the Budget Directorate (Dipres) promised adjustments. That figure differs from the range cited by the governors.
Meanwhile, the first joint subcommittee reviewed item 50, covering the Public Treasury, from which the other allocations derive. It did not have time to vote on it because of the document's length. One topic was the government's request to raise the debt limit from 17,400 to 25,000 million dollars.
Budget Director José Pablo Gómez defended that increase. He warned that, without it, Chile could run out of funds to meet its obligations and default, meaning it would stop making payments. According to Gómez, a default could lead other creditors to demand early repayment of their bonds.
The review of budget allocations will continue on October 19, when Congress resumes work after the constituency week.