President of the Republic José Antonio Kast and Finance Minister Jorge Quiroz today signed the Fiscal Policy Decree, an instrument that establishes the trajectory of the country's public finances through 2030.

The decree establishes a sustained reduction in the structural deficit. Specifically, the deficit target decreases progressively throughout the period, starting at 2.6% of GDP in 2026 and declining to 1.8% in 2027, 1.7% in 2028, and 1.6% in 2029, reaching 1.5% of GDP in 2030, while maintaining a medium-term debt anchor of 45% of central government gross debt.

Finance Minister Jorge Quiroz highlighted the decree's rationale: "The fiscal situation we found upon taking office was more complex than anticipated. This reality demands that we act with responsibility and decisiveness. The targets we have set are achievable, and they do not depend exclusively on fiscal consolidation instruments: they depend heavily on economic growth recovery, a process in which we have full confidence will occur."

The established trajectory concentrates the greatest consolidation effort at the outset of the period and maintains a gradual and sustained improvement toward 2030. In doing so, the decree seeks to stabilize public debt trajectory and strengthen the State's financial position. The sustainability of public finances constitutes a necessary condition to safeguard the State's capacity to respond to citizens' needs, face future contingencies, and ensure the continuity of social policies.

Regarding the relationship between fiscal responsibility and growth, the minister noted that "fiscal discipline is not an end in itself. It enables the continuity of social policies and, insofar as there is certainty about fiscal consistency going forward, it also promotes investment and facilitates certainty regarding tax burdens. That makes it possible to create employment, recover economic growth, and expand development opportunities for Chilean families."

The decree is framed within a comprehensive fiscal policy strategy aimed at reconciling the sustainability of public finances with growth recovery, based on four pillars.

The first is economic growth recovery, which constitutes a necessary condition for public finance sustainability, since an economy that invests, generates employment, and raises its productive capacity strengthens the revenue base upon which the State finances its obligations over time.

To this is added the rationalization and reordering of public spending, ensuring that every peso the State spends is justified and reaches its intended recipient, through combating social fraud, correcting inefficiencies, and improved targeting of expenditure.

The third pillar is the modernization of management of the State's equity participation in state-owned enterprises, which administer relevant assets belonging to all Chileans, with the objective of strengthening their management, increasing transparency, and improving their contribution to the country's development and value creation for citizens.

Finally, comprehensive management of fiscal assets and liabilities, which optimizes the use of State assets, strengthens its financial position, and reduces financing costs that ultimately all taxpayers bear.

The minister reiterated the Government's commitment to public finance sustainability: "Every peso the State spends is a peso belonging to all Chileans, and we will continue with that diligence in protecting resources that belong to everyone."