The Network of Progressive Think Tanks has issued a critical assessment to opposition lawmakers regarding the first month of José Antonio Kast's economic policy. The report, authored by a group of economists, concludes that the administration's decisions lack a coherent strategy.
The analysis warns that current measures are shifting the burden of the global crisis onto Chilean families. The document forecasts a period of slower economic growth, accompanied by rising inflation and increasing levels of unemployment and poverty across the country.
The Impact of Fuel Policy
The report identifies the decision to eliminate the MEPCO mechanism's price buffer as a major management error. Through this move, the government is passing international oil price hikes directly onto families and domestic businesses.
The group's economists argue that this measure was not driven by a need for fiscal adjustment. According to the document, the decision "was an ideological choice whose costs are paid by the same people as always."
Rising fuel prices are creating direct and cumulative effects on household economies. The report details how this increase drives up inflation and makes basic goods more expensive. Furthermore, it warns that the situation is driving up borrowing costs for the public.
The analysis also calls into question the tax reform promoted by the administration. The criticism focuses on the corporate tax cut, a measure that would reduce tax revenue and primarily benefit high-income sectors.
In this context, Frente Amplío Senator Diego Ibáñez warned of the impact on public finances. The lawmaker noted that the corporate tax reduction could lead to a deficit of nearly 1% of GDP, significantly reducing tax collection.
The opposition is calling for a course correction in economic policy. Lawmakers are insisting on the need for measures that prioritize stability and the protection of citizens' purchasing power. The debate is expected to intensify in Congress as the administration's upcoming reforms arrive.