The government of Jose Antonio Kast ordered a cut in Chilean public spending

Yesterday, the government of President José Antonio Kast made official an ambitious plan to cut public spending in the amount of 3 billion dollars. The measure seeks to strengthen the sustainability of national finances and ensure the stability of social benefits in the long term.

The program is based on the reduction of the annual public expenditure growth limit, in addition to operational adjustments that seek to reduce gross spending by an additional 800 million dollars.

This adjustment will be implemented by decree by the Ministry of Finance, with the objective of extending the plan across all budgetary subheadings. In addition, the collaboration of the Office of the Comptroller General of the Chilean Republic has been requested to oversee the execution of these measures throughout the

in each state department.

Under the premise of eliminating “unnecessary spending”, the Kast government has applied a 3% reduction in gross public spending in each budget line, achieving immediate savings for the Chilean State. In parallel, national ministries will undertake a technical oversight campaign to prevent malpractices in the management of fiscal resources and ensure that every peso

reaches citizens.

In addition, the State will initiate a process of reviewing public service contracts to identify unfulfilled tenders. Special emphasis will also be placed on auditing absenteeism and the unjustified use of medical licenses within the public sector, factors that have diminished

state productivity in previous years.

The road map of this initiative seeks to consolidate a budget for the year 2027 fully adapted to the new Chilean management model, consolidating the structural adjustment initiated this month of March.