Chile Submits 2027 Budget With 1.5% Spending Rise Focused on Security, Jobs

Chile's government submitted the 2027 budget bill to Congress on Wednesday, proposing a 1.5% increase in public spending over 2026 execution levels. Finance Minister Jorge Quiroz said the growth could exceed 1% and aims to maintain social benefits while creating jobs.

The plan allocates $9.5 trillion pesos to growth, work, and reconstruction, including 241 public works projects brought forward to January and over 166,000 housing subsidies. Security spending rises 9.1% to $7 trillion pesos, funding 1,000 new Carabineros positions and a near 18% budget jump for Gendarmería prison infrastructure.

“We are working to ensure this budget, within fiscal constraints, has a clear and defined orientation.”

Child protection receives $2.5 trillion pesos, a 4.1% increase, with funds for at-risk youth rising 165% and technical aid for children with disabilities doubling. The government evaluated 632 programs across 23 ministries to redirect resources toward urgent needs.

Quiroz set a target to cut the structural deficit from 3.7% of GDP in 2025 to 1.5% by 2030, backed by an estimated $2 billion in additional structural revenue. President Kast urged lawmakers to avoid "political trenches" during the 60-day legislative debate.