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Original article: Las promesas económicas de Kast se caen a pedazos: Hacienda entierra también la meta de crecimiento del 4%

The government of José Antonio Kast faced another setback in its economic program on Wednesday. Just 24 hours after acknowledging that it would not achieve fiscal balance during its administration, Finance Minister Jorge Quiroz confirmed to the Senate Finance Commission that it would also not meet the 4% growth target pledged during the campaign.

During the presentation of the new Fiscal Policy Decree 2026-2030, the Secretary of State indicated that according to revised projections from La Moneda, the Chilean economy is expected to grow by 3% in 2027 and 2028, and only reach 3.5% by 2030, significantly below the 4% benchmark set by the far-right president for the end of his term.

«Our aspiration has always been to reach 4%, but once again we are being cautious with projections,» Quiroz admitted before the senators.

Second Consecutive Adjustment: Goodbye to Zero Deficit

This revision marks the second consecutive adjustment that the government has made to its economic direction. On Tuesday, the Ministry of Finance had already abandoned the goal of structural balance by the end of the presidential term, replacing it with a structural deficit of 1.5% of GDP for 2030.

The new fiscal forecasts project a deficit of 2.6% in 2026, which will gradually decrease to 1.5% by the end of the current administration. Simultaneously, the executive will maintain a reference point of public debt equivalent to 45% of GDP, slightly above the current 43.1%.

Quiroz defended the shift by reiterating that the inherited starting point was worse than originally anticipated, as reported by El Mostrador.

«Without growth, there is no fiscal sustainability,» he asserted while presenting the four pillars of his strategy: recovery of growth, rationalization of public expenditure, modernization of state assets, and comprehensive management of fiscal assets and liabilities.

In this context, the minister announced an offensive to identify and monetize state assets considered non-essential by the Kast administration. In fact, the Finance Ministry has already requested other ministries to conduct a catalog of non-essential goods and properties, specifically mentioning public lands in the northern part of the country whose value has increased due to mining development.

«We’re talking about selling physical assets, focusing on the north. We’re talking about land, about national assets,» he affirmed.

The Controversial Mega-Reform as a Central Focus

The presentation also highlighted the significance the executive places on its controversial economic and tax mega-reform project, currently under consideration in Congress, which according to experts, presents uncertain projections regarding growth and revenue, while tax reductions could lead to a high fiscal cost.

According to Quiroz, the new projections incorporate the effects of this initiative, unlike the Public Finance Report from May, which projected expansions of only 2.2% for 2027 and 2028.

The head of the Treasury warned that without controversial measures like the reduction of the first category tax from 27% to 23%, the elimination of the capital gains tax on stock sales, the implementation of a tax credit for formal employment, and a 25-year tax invariability for investments exceeding $50 million, the economy would face an “unsustainable” path.

Harsh Criticism from the Opposition

The opposition has raised harsh criticisms. Senator Yasna Provoste (DC) questioned the concept of “social fraud” used by the government and warned of risks of polarization. Her counterpart Diego Ibáñez (FA) asked Quiroz whether this narrative was part of a “cultural battle”, to which the minister replied affirmatively, although he linked the discussion to the need to strengthen private investment.

The Great Economic Promises of Kast Are Set Aside

The message conveyed by the Finance Minister was unequivocal: the economic program with which Kast came to power is now operating under significantly more conservative parameters. The 4% growth target has shifted to the realm of aspirations, and the zero deficit is no longer a goal for the current term.

Instead, the government is focusing on a gradual consolidation of public accounts and hopes that economic reactivation will help avoid further deterioration of public finances. For a government that made accelerated growth its main banner, the fall of these promises represents a difficult blow to disguise.

La entrada Economic Promises of Kast Deteriorate: Finance Minister Abandons 4% Growth Target se publicó primero en El Ciudadano.