- Chile: President-Elect, Mr. Gabriel Boric, reiterated commitment to fiscal responsibility in meeting with business leaders
CHILE: PRESIDENT-ELECT, MR. GABRIEL BORIC, REITERATED COMMITMENT TO FISCAL RESPONSIBILITY IN MEETING WITH BUSINESS LEADERS
On Thursday, January 13, Chile’s President-Elect, Mr. Gabriel Boric, spoke at a business leaders roundtable (ENADE), his biggest economic speech since his electoral win. At the meeting, he called for dialogue, reiterating his commitment to fiscal responsibility and the need to reach consensus to deliver on his pledged reforms.
Regarding the economy, Mr. Boric reassured participants he would pursue changes gradually, in the context of the current (but unsustainable) consumer spending boom, and strained public finances. Mr. Boric further outlined his economic agenda along three main objectives: economic growth while protecting the environment; increase investment, and recover formal employment. In addition, he mentioned that he will respect the goal for the structural deficit for 2022 estimated in the fiscal budget approved last November (3.9% of GDP). Therefore, he said that new expenditures—out of the approved fiscal budget—will be financed with the freely available funds (USD 800 bn) and with budget reallocations, in a context of fiscal transparency.
Lastly, on Wednesday, January 12, the Minister of Finance updated the estimation for 2021 fiscal incomes, anticipating that the higher economic growth (around 12%) compared to the last estimation made in September (9.5%) will contribute with USD 4.3 bn in additional resources (non-considered in the fiscal budget), which will be available for use by the new government.
—Anibal Alarcón
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