Chilean regional governors protest proposed 7% budget cut

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Regional governors in Chile are challenging a proposal by the Ministry of Finance to implement a 7% budget cut for 2027. The tension escalated during a meeting of the Fourth Mixed Budget Subcommittee, where officials discussed the potential reduction.

Minister of Finance Jorge Quiroz justified the cut by citing a nearly 20% budget under-execution rate detected in 2025. However, regional leaders dispute this figure, claiming the actual under-execution is only 4.1%. Alejandro Santana, president of the Association of Regional Governors, warned that this would represent the most significant adjustment in 33 years of regional government history.

Governors also attributed execution difficulties to delays or non-compliance with agreements by central government services. Senator Yasna Provoste emphasized the need to strengthen public investment to combat regional unemployment, while Subsecretary of Regional Development Sebastián Figueroa indicated a willingness to review the data to reach an agreement.