Chile’s president proposes 2.7% spending increase in 2025 budget

SANTIAGO (Reuters) – Chile’s government is proposing a 2.7% annual increase in its 2025 budget, President Gabriel Boric said on national TV on Sunday, saying the government will boost pensions and focus on increasing national security.

Boric said the budget would focus on increasing safety for Chilean citizens, with a budget for justice and security $1.5 billion higher than this year’s, helping put more police on the streets, raise pay for officers and control crime in prisons.

The government would also look to limit migration, he said. Boric has hardened his tone on illegal migration in recent months, saying he will expel migrants who have not attended the official biometric registration process.

Boric said the budget would also help boost pensions, the health sector, education and culture.

“We are forging a sustainable economy that grows and generates more wealth for everyone,” Boric said.

Earlier this month, Chile’s central bank said it expects inflation to close this year at 4.5% before slowing to 3.6% next year, while trimming its economic growth forecast to between 2.25% and 2.75% from a prior forecast of up to 3%.