Chilean governors warn 2027 budget cuts $250 billion from regional investment funds

Chilean regional governors are warning that the 2027 Budget Bill, submitted to Congress this week, includes a cut of approximately $250 billion pesos in regional investment funds. The Association of Governors (Agorechi) analyzed the allocations on Friday and raised alarms about the impact on financing public works. Valparaíso Governor Rodrigo Mundaca stated the fiscal adjustment exceeds the 6% anticipated by the Ministry of Finance, describing a reduction of over 15% for his region, totaling more than $15 billion pesos. This would affect housing, health centers, and infrastructure. The Biobío region faces a roughly 10% decrease in investment resources, while Ñuble Governor Óscar Crisóstomo reported a 12% cut, or $11 billion pesos less, potentially causing payment stoppages to contractors. The regional leaders plan to discuss the issue with Finance Minister Jorge Quiroz, requesting the preservation of incentives for good budget execution and easier access to monthly remittances.