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The Ministry of Finance will deliver tomorrow the Budget for the year 2021 to Congress, whose main axes will be made known by the President Sebastián Piñera tonight on national network.
The head of the portfolio, Ignacio Briones, stressed that the country is going through a moment of fiscal tightness and high public debt, and although spending will remain expansive, it is necessary to recover growth.
The message that will be released to the country on the national chain at about 9 p.m. and has been called the Budget of Work and Reactivation, where it has already been said that the main axes will be the Public Works and Housing, where there are investment plans for 34 billion dollars until 2022, and of course also Economy and Labor, to promote the reactivation of companies.
This design of spending for the next year also it was negotiated with the opposition within the framework of the Covid Emergency Fund, with the main commitment that the State must maintain an expansive budget, at least until 2022.
This agreement also implies that the gross debt of the public sector It should not exceed 45% of GDP for this period. A report from the Budget Office revealed that, this year, we are already reaching 32.2%, the highest level in almost three decades.
It was ratified today by the Minister of Finance, Ignacio Briones, who was quite clear in emphasizing that it is essential to recover economic growth, to ease the burden of reducing this debt for generations to come.
There is mistrust among economists regarding this commitment. Part of the opposition has distanced itself in a certain way from what was included in the expenses of the Emergency Fund and going forward They see complex that this rule can be fulfilled of austerity from 2022 onwards.
The economist from the University of Chile, Alejandro Alarcón, pointed to increase spending efficiency to maintain the fiscal coffers in the coming years or, otherwise, he warned that access to credit for the country could become increasingly complex, as well as the conditions for foreign investment.
For his part, the director of the Business School of the Universidad Mayor, Francisco Castañeda, also considered that here it is important what is done from the economic policy, or it will be very difficult to combine high levels of debt with the reactivation process.
Congress will see what state items and programs could reduce their budget based on a poor evaluation, for being considered inefficient, which is the work that Dipres has done.
In the coming days, the Ministry of Finance will also announce part of this tax roadmap that has been working with the advice of the International Monetary Fund and the OECD.
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