SerenaCerv
New member
The government will adjust its fiscal deficit in a more moderate manner after the collapse of the Omnibus Law, with a projected financial deficit of 0.2% of GDP, some Ch$400 billion less than planned. The economic team estimates a fiscal surplus in January, attributed to a lower expenditure execution since the beginning of the new administration. The reduction in spending in January was 37% in real terms, higher than in the previous month. The government lost tools to achieve the zero deficit, including the tax increase in the Omnibus Law. It will seek to compensate with other measures, such as updating the fuel tax. It plans to resume reforms in Congress, including changes in the retirement formula and in the personal income tax. An adjustment in subsidies and public works is foreseen, with quarterly targets to reach a primary surplus of 2% of the GDP and financial balance by the end of the year.
