Santiago-Chile’s President Sebastian Pinera on Thursday unveiled a draft budget of $82.1 billion for 2022, said the world’s top copper after more than a year of emergency spending to combat the COVID-19 pandemic. The lack of a balloon in the grower will begin to reduce.
In a televised speech, the centre-right president said the budget would reduce the structural deficit from 11.5 per cent of GDP in 2021 to 3.9 per cent of GDP in 2022.
“It represents … an essential step in the recovery of the fiscal balance, in the stabilization of the public debt, and in strengthening the enduring pillars of our country’s economic growth and human development,” Pinera said.
Chile’s economy has returned from months of budget COVID-19-induced stagnation, fueled by a world-class vaccination campaign, and a raft of stimulus measures put in place by the government.
But those measures, Pinera said, saw the 2021 budget balloon to $27 billion, or 33.7 percent more than what was approved by lawmakers last year – the equivalent of about 10 percent of total GDP.
“This level of fiscal deficit and increase in debt is not sustainable over time,” he said.
Pinera said the new budget would see a drop of about 22.5 percent from the total projected outlay in 2021, which also includes emergency measures, but still represents a 3.7 percent increase over the baseline 2021 budget approved by lawmakers last year.
Pinera said the budget allocates renewed funding for housing, public works and new infrastructure for the 2023 Pan American Games, which will be held in the capital Santiago, as well as an emphasis on healthcare.
Pinera said Chile, among the first countries in the world to start giving booster vaccine shots against COVID-19, has already received the vaccines it needs for 2022.
The budget, he said, also dedicates money to tackling a debilitating drought raging across central and northern Chile, as well as climate change.
MPs now have 60 days to review and approve the budget.
This News Originally From – The Epoch Times