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Kast justifies major cuts to Chilean Parliament, seeks political support for economic overhaul

From El Nacional · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Chilean President José Antonio Kast presented his first public address to Congress, criticizing the previous administration's financial legacy and defending austerity measures.
  • Kast justified significant budget cuts, totaling $6 billion over 18 months, to reduce the structural deficit, stating the country's fiscal conditions are worse than anticipated.
  • The president acknowledged the austerity plan will involve hardship but vowed his government would not deviate, announcing a bill to merge ministries and create an institutional redesign commission.

Chilean President José Antonio Kast used his first public address to Congress to strongly criticize the financial inheritance from the previous administration. He defended drastic fiscal austerity measures, stating the country's fiscal conditions are "worse" than his team projected before taking office on March 11.

We do not want to paralyze or frighten citizens, but we do want to highlight the difficult reality we are facing.

— José Antonio KastDuring his first public address to Congress, President Kast described the country's fiscal situation.

During a nearly two-and-a-half-hour speech, the far-right president justified the significant budget cuts his cabinet has implemented. He offered few concrete announcements on public security and irregular migration control, key issues from his campaign. Kast emphasized the "urgency" to reverse economic stagnation and achieve growth rates above 2.5%, which Chile last saw in fiscal year 2025.

"We do not want to paralyze or frighten citizens, but we do want to highlight the difficult reality we are facing," Kast stated. He openly admitted that economic reactivation and fiscal rebalancing "will not be quick" and will involve "pain." To address this, he validated his ambitious macroeconomic consolidation plan, aiming to cut $6 billion over 18 months to reduce the 2025 structural deficit of 3.7%.

We were made to believe that a larger state was automatically better... Experience proved the opposite.

— José Antonio KastPresident Kast defended his government's austerity measures and budget cuts.

Shortly after taking office, Kast decreed an average 3% reduction in all ministry budgets, a shock measure saving $2 billion to date. "We were made to believe that a larger state was automatically better... Experience proved the opposite," argued the Republican Party leader. He guaranteed this "profound" adjustment would not harm state aid or the social rights of vulnerable sectors.

There will be pressure, there will be noise, there will be hard days. Our government will not deviate from the path.

— José Antonio KastPresident Kast vowed his government would remain committed to its austerity plan despite expected challenges.

"There will be pressure, there will be noise, there will be hard days. Our government will not deviate from the path," the president warned. He also announced a bill to merge the Ministry of the Interior with the General Secretariat of Government, and the creation of a technical commission to redesign the state's institutional architecture. The "mega-reform is indispensable," he declared, as his administration faces complex conditions marked by declining approval ratings.

The mega-reform is indispensable.

— José Antonio KastPresident Kast declared the necessity of his economic reform plan.
DistantNews Editorial

Originally published by El Nacional in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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