Chile's Ministry of Finance has released Official Memorandum No. 16, a document outlining the guidelines for the 2027 Budget Bill and the 2028-2031 Financial Programming. The document proposes a permanent fiscal adjustment that could reach $5.4 trillion by 2027, impacting 142 state programs.
The government describes the current situation as one of "fiscal tightness," aimed at restoring the balance of public accounts. The measure comes after more than a decade of deficits and a sustained deterioration of the country's financial position.
Within the Ministry of Education, the proposal includes the potential discontinuation of the JUNAEB School Meal Program, which costs over $1 trillion. The Public Education Support Fund is also under scrutiny.
Former Labor Minister and presidential candidate Jeannette Jara criticized the initiatives, warning that programs such as school meals serve as the primary source of food for thousands of students. Conversely, Deputy Álvaro Jofre of the National Libertarian Party backed the suggestions of Finance Minister Jorge Quiroz, arguing that the measures aim to eliminate poorly evaluated programs.
The adjustment also affects the Ministry of Social Development, with proposed reductions to the Accredited Collaborator Foster Family program (FAE CA) and Protection Residences for the Elderly (RPM). In 2025, these programs managed expenditures exceeding $52,000 and $44,000 billion, respectively.
Regarding public safety, the plan proposes discontinuing the Program Against Organized Crime (PNCO), which recorded spending of more than $67,000 billion in 2025. Additionally, modifications are proposed for the "Streets Without Violence" Plan, a strategy launched during the Gabriel Boric administration.
Former Interior Minister Carolina Tohá rejected the measures, stating that they represent a setback for public policies developed over many years. In contrast, Republican Party Deputy Chiara Barchiesi maintained that the cuts respond to the need for fiscal consolidation and are based on evaluations from the Budget Directorate.
Finally, the Ministry of Justice faces a proposal to eliminate the Human Rights Program and a 15% cut to legal aid. Deputy Nelson Venegas of the Socialist Party stated that he will exercise his oversight role to ensure the continuity of social policies.
