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Congress officially began the processing of the 2021 Budget Law, with the presentation of the state of the Public Treasury by the head of the portfolio, Ignacio Briones.
Before the mixed commission in charge of the treasury for next year, the Secretary of State made a summary of the spending that the public sector has incurred during the emergency, and the fiscal scenario of the country.
According to Briones, the State has mobilized resources for around 30 billion dollars during the pandemic, and Central Government spending would grow by 11.4% compared to the 2019 execution, according to the projection of the Budget Office .
In addition, the estimate contemplates that the total revenue of the Treasury will fall by 10.6% in 2020, but would grow by 18.4% in 2021.
In this scenario, the structural deficit will reach 3.2% of Gross Domestic Product this year and up to 4.7% in 2021.
Along these lines, the head of the Treasury recalled the importance of the austerity commitment agreed with the opposition, in order to maintain gross debt at around 45% of GDP by 2024.
The chairman of the Senate Finance committee, DC Jorge Pizarro, agreed on the importance of making an effort for austerity and increasing the efficiency of public spending. However, he insisted that Congress will have to intervene in the discussion on spending priorities raised by La Moneda.
This Friday, the debate on the Budget Law will continue, where the legislators will raise the first doubts about the treasury for next year to the Minister of Finance who, for his part, will present the macroeconomic projections contained in the Public Finance Report of the third trimester.
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