Chile’s 2025 Budget Proposal

SANTIAGO (Reuters) – Chile’s government is proposing a 2.7% annual increase in its 2025 budget, as announced by President Gabriel Boric on Sunday. The budget aims to boost pensions, healthcare, and enhance national security.

Boric emphasized that increasing safety for Chileans is a priority, with a $1.5 billion hike for justice and security compared to this year’s budget. This increase will facilitate more police presence on the streets, higher officer salaries, and additional investment in prisons.

“Guaranteeing your right to security is the first priority for my government,” Boric stated on national television. The security budget is set to rise 15% over three years.

Additionally, the South American government plans to limit migration. Boric has taken a tougher stance on illegal migration, noting that immigrants who do not comply with the biometric registration process will be expelled.

At the recent United Nations General Assembly, Boric expressed concerns about the Venezuela crisis, which has led to a mass exodus of a quarter of the Venezuelan population over the past decade. He indicated that Chile is not in a position to accept more migrants.

The proposed 2025 budget also includes allocations for pensions, the health sector, education, and culture. Funding for Chilean immunization programs will see a 42% increase.

Another aspect of the proposal is the digitization of 240 sector permit processes, which is expected to accelerate investments.

Recently, Chile’s central bank projected inflation to close this year at 4.5%, decreasing to 3.6% next year. The economic growth forecast has been revised downward to between 2.25% and 2.75% from a previous estimate of up to 3%. Boric’s government is targeting a growth rate of 2.6%.

The government will present the bill to Congress on Monday, providing lawmakers 60 days to consider its approval. Recently, Congress approved new tax legislation expected to generate an additional $1.2 billion for the state.