The Ministry of Finance, via an official memorandum signed by Minister Jorge Quiroz, has recommended a budget cut of at least 15% for 260 social programs as part of the 2027 Budget proposal. According to a report by El Mostrador, this structural adjustment aims to implement a multi-year spending restriction that could extend as far as 2031.
The proposal includes cuts to the Universal Guaranteed Pension (PGU), free university tuition, the Winter Bonus, and Family Allowances. Overall, the reduction suggested by the Finance Ministry amounts to $2.8 trillion pesos.
The measure creates a direct contradiction with President José Antonio Kast's campaign promises. During his campaign, the President assured voters that he would not cut any existing social benefits and specifically defended the PGU, even using the slogan “I love the PGU” during debates, as reported by El Mostrador.
The adjustment also includes reductions to 17 other benefits managed by the Social Security Institute (IPS), which together affect more than three million people and exceed $1.7 trillion pesos. Furthermore, the memorandum proposes the restructuring or discontinuation of 142 social programs in areas such as school meals, healthcare, and regional transportation.
Opposition Reactions and Criticism of Social Development Budget
The opposition has denounced a severe impact on the Social Development sector following the release of a decree that modifies the budget with a reduction of 32.721 billion pesos in that department. Congressman Jaime Araya (Ind-PPD) criticized the move on X, stating that the government is attempting to "make the social protection system creak" in order to dismantle policies built since the return to democracy.
“First, it was the children eating in public schools who were harmed by the cuts planned by Mr. Quiroz. Now, he wants to cut benefits for newborns, all to build a fund to finance a $4.8 billion gift to Chile's wealthiest,” Araya stated, according to BioBioChile.
PPD General Secretary José Toro Kemp questioned the 1.85 billion peso reduction in the Newborn Support Program (baby kit). Toro raised concerns regarding whether the quality of supplies provided to beneficiaries would be compromised by the budget cut.
The Treasury decree also impacts institutions such as the National Service for the Specialized Protection of Children and Adolescents (formerly Sename), Conadi, Injuv, and the Indigenous Lands and Waters Fund, according to data from BioBioChile.
Presidential Defense and Government Stance
President José Antonio Kast backed the work of his ministers, Jorge Quiroz and Iván Poduje, in the face of the backlash. In statements reported by CNN Chile, the President maintained that the Government is currently in an installation phase and that corrections are possible.
“We said we were not going to cut people's rights, and we won't; however, we do need to tidy up the house, and that is exactly what Minister Quiroz is doing—he has done a great, very difficult job,” Kast affirmed.
The President emphasized that food programs for schoolchildren will not be eliminated. Regarding the controversy over the wetlands law and the criticisms directed at Minister Poduje, Kast urged that the regulations be analyzed to improve their implementation in the future.
