Chilean Congress endorses historic reduction in public spending by 2022

The Chamber of the Chamber of Deputies of Chile passed into law the Budget for 2022, the agreement reached between the government and senators and, which contemplates a historic reduction in public spending. In a session of less than 30 minutes, the Chamber of the Corporation endorsed by 79 votes in favor and 3 against the one reached in the Upper House two weeks ago.

In this way, the Government that takes office on March 11 of next year must manage a treasury that contemplates a total drop in spending of 22.5% compared to the execution projected for the current year, but is 3.5% higher than that approved by Congress for the current period.

The approval represents a triumph for the Minister of Finance, Rodrigo Cerda, by processing one of the most complex treasuries since the return to democracy and which leaves behind the historical fiscal impulse implemented in 2020 and 2021 to face the health emergency.

“This is very good news because this Budget will allow us to reactivate the economy again because it brings a lot of public investment. It also brings a series of funds that have to do with SMEs, with employment and funds that are related to continuing to work in the pandemic “, he claimed.

In the Senate, the parties reached a consensus on one of the most controversial issues of the treasury: the departure of the Ministry of the Interior, specifically silver for the new regional governors, by increasing resources by $ 50,000 million ($ 61,607 million) of cash balances that may be available to the regional authorities.

Other requirements were included, such as the incorporation of FAR resources for physical connectivity, electromobility projects and for digital connectivity, in addition to an increase of almost $ 2 billion (2.464 million dollars) in resources for the new Service of Migrations

As part of the Public Treasury, resources were agreed for the Institute of Human Rights (INDH) and the “culture bonus” for artists and workers in the sector.

In Health, the resources for the resolution of waiting lists were increased by $ 120,000 million (147, 857 million dollars), more funds for expenses in personnel of the National Cancer Agency and will increase the fund for the per capita for the primary health.

Another point disputed between the parties was Housing, where it was approved, incorporated the municipalities so that they can apply subsidies in the Minvu. In Education, it was agreed to create a new fund to support Local Education Services, the postponement of regulated fees for higher education institutions to 2023.

Also, resources were approved for bankruptcy funds to rural schools with a high rate of indigenous students, the extension of the benefit of kindergarten school transportation to rural schools.

While in Culturas y las Artes it was agreed to create a fund for 20 million dollars for collaborators in the field. The agreement also included the creation, in 2022, of a Public Registry of Final Beneficiaries of Companies, both private and state



Reference-www.eleconomista.com.mx

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