Chilean regional governors warn of impact from proposed 2027 budget cuts

Regional governors in Chile are protesting proposed budget reductions for 2027, warning that the cuts will undermine decentralization and essential public services.

In the Maule region, Governor Pedro Pablo Álvarez-Salamanca expressed concern over a proposed $10 billion peso reduction. He noted that such a cut could jeopardize critical investments, including the construction of a new police sub-station, vehicle renewals for the Investigative Police (PDI), and projects for Carabineros, Gendarmería, and firefighters. He also highlighted a long-term electromobility plan valued at approximately $180 billion pesos.

In the Ñuble region, Governor Óscar Crisóstomo described a proposed $250 billion peso total reduction for regional governments as the most severe blow to decentralization since these institutions were created. Specifically for Ñuble, the adjustment exceeds $11 billion pesos, which Crisóstomo warns could impact school transportation for 8,600 youths, reduce services for women, and affect childcare programs. He also noted the potential to exacerbate regional unemployment, which currently stands at 11.2%.

Senator Yasna Provoste, chair of the budget subcommission, supported the call to restore funds, stating that a budget reducing regional resources cannot be approved amidst economic stagnation. The debate remains ongoing as the 2027 Budget Law is processed.