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Chile's president proposes 2.7% spending increase in 2025 budget

Published 09/29/2024, 08:31 PM
Updated 09/29/2024, 09:10 PM
© Reuters. FILE PHOTO: President Gabriel Boric Font of Chile addresses the 79th United Nations General Assembly at U.N. headquarters in New York City, U.S., September 24, 2024.  REUTERS/Eduardo Munoz/File Photo

SANTIAGO (Reuters) -Chile's government is proposing a 2.7% annual increase in its 2025 budget, President Gabriel Boric said on Sunday, saying the government will boost pensions, healthcare and focus on increasing national security.

Boric said the budget would focus on increasing safety for Chilean citizens, with a budget for justice and security $1.5 billion higher than this year's, helping put more police on the streets, raise pay for officers and invest more in prisons.

"Guaranteeing your right to security is the first priority for my government," Boric said on national television, adding that with this proposal the budget for security would be up 15% in three years.

The South American government would also look to limit migration, he said. Boric has hardened his tone on illegal migration in recent months, saying he will expel migrants who have not attended the official biometric registration process.

Boric had raised concerns this week at the United Nations General Assembly over the crisis in Venezuela, which has seen a quarter of its population emigrate in 10 years, and said his country was not in a condition to receive more migrants.

The 2025 budget, Boric added, will also help boost pensions, the health sector, education and culture. Resources for Chilean immunization programs would be up 42%, he said.

The proposal also includes resources to digitize 240 sector permit processes, which Boric said should speed up investment.

Earlier this month, Chile's central bank said it expects inflation to close this year at 4.5% before slowing to 3.6% next year, while trimming its economic growth forecast to between 2.25% and 2.75% from a prior forecast of up to 3%.

© Reuters. FILE PHOTO: President Gabriel Boric Font of Chile addresses the 79th United Nations General Assembly at U.N. headquarters in New York City, U.S., September 24, 2024.  REUTERS/Eduardo Munoz/File Photo

Boric said the government is targeting growth of 2.6%.

The government is set 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 bring an additional $1.2 billion to state coffers.

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