Chile president proposes 2.7% spending hike in 2025 budget, by Reuters

SANTIAGO (Reuters) – Chile’s government is proposing a 2.7 percent annual increase in its budget through 2025, President Gabriel Boric said on Sunday, saying the government would boost pensions, health care and focus on boosting national security.

Boric said the budget would focus on increasing the safety of Chilean citizens, with a $1.5 billion larger justice and security budget than this year’s, helping to put more police on the streets, increase officer salaries and to greater investment in prisons.

“Guaranteeing your right to security is the first priority for my government,” Boric said on national television, adding that the proposal would increase the security budget by 15 percent over three years.

The South American government would also seek to limit migration, he said. Boric has toughened his tone on illegal migration in recent months, saying he would deport migrants who did not participate in the official biometric registration process.

Boric expressed concern at the United Nations General Assembly this week about the crisis in Venezuela, which has seen a quarter of its population emigrate in 10 years, and said his country was unable to take in more immigrants.

The 2025 budget, Boric added, will also contribute to the growth of pensions, the health sector, education and culture. Resources for Chile’s immunization programs would increase by 42 percent, he said.

The proposal also includes resources for the digitization of 240 sectoral authorization processes, which Boric said should accelerate investment.

Earlier this month, Chile’s central bank said it expected inflation to close this year at 4.5 percent before slowing to 3.6 percent next year, while cutting its economic growth forecast to 2, 25% and 2.75% from a previous forecast of up to 3%.

Boric said the government is aiming for 2.6 percent growth.

The government is due to present the bill to Congress on Monday, and lawmakers will have 60 days before deciding whether to approve it. Congress recently approved new tax legislation that should add $1.2 billion to state coffers.