After days of negotiations, Chile’s National Congress has approved the 2026 Budget Bill, concluding the legislative process three days before the statutory deadline. The bill now awaits promulgation.
A joint committee of five deputies and five senators resolved 14 differences between versions passed by the Senate and Chamber of Deputies. The Chamber ratified the committee’s report with 66 votes in favor and 35 against, but did not reach quorum to approve specific Budget Notes related to Regional Governments’ transfers to state-owned enterprises. The Senate later approved the bill with 27 votes in favor and one against. Earlier in the week, most fiscal chapters had already been cleared.
The total budget for 2026 is CLP $86.2 trillion, representing a 1.7% increase over the previous year’s law. This marks President Gabriel Boric Font’s final budget submission, maintaining a focus on fiscal discipline while prioritizing health, pensions, housing, and public security.
Finance Minister Nicolás Grau Veloso said: “The approval of this Budget is good news for Chile. It is a Budget firmly grounded in social commitment and fiscal discipline. The bill that has now passed—built through broad cross-party agreement—is better than the original version, as congressional work allowed for increases in health, security, housing, and education without raising total expenditure above the Executive’s initial proposal. Thanks to this collective effort, and the generosity of many lawmakers from both government and opposition, we can strengthen public, social and economic security for families throughout Chile.”
Budget Director Javiera Martínez Fariña commented: “We submitted a Budget that is both socially oriented and fiscally responsible, and as is customary, it was further enhanced throughout its congressional review. As part of this commitment to fiscal discipline, the joint committee approved a provision that safeguards compliance with fiscal policy, aligned with the efforts undertaken by this administration. To prepare this 2026 Budget, we reassigned US$2.8 billion —equivalent to 0.8% of GDP—to fund citizens’ priorities. This included over US$150 million cut from underperforming programs, ensuring that public funds are directed toward the most urgent needs of families. We thank Congress for supporting this administration’s final Budget, which maintains the responsible spending framework proposed by the Executive.”
Undersecretary of Finance Heidi Berner added: “We conclude the legislative review of President Boric’s final Budget Bill with the satisfaction of having reached agreements around a proposal that is responsible with fiscal accounts and centered on citizens’ well-being. The final outcome is a strengthened version, the result of democratic dialogue within our institutional framework. We thank senators and deputies for their ongoing willingness to reach agreements over these four years, during which institutional frameworks have been strengthened with new transparency and public spending efficiency rules—such as those governing transfers to non-profit organizations.”
Minister Secretary-General Macarena Lobos Palacios stated: “As a Government team, we are very pleased to deliver the 2026 Budget on time and in due form. It was a complex legislative process in the middle of an electoral cycle, but we value that all sides stepped out of their trenches and ultimately put citizens’ needs first. We have built a Budget that is stronger in both pillars: fiscal responsibility and social responsibility, with more than 60% of total spending directed toward social priorities such as education, health, employment and housing.”
During negotiations in committee sessions aimed at reconciling House-Senate differences on amendments proposed by the Ministry of Finance, additional funding was allocated to key areas including public security (CLP $5 billion), support for youth organizations (CLP $100 million), sports foundations (CLP $300 million), cultural initiatives like memory sites while reducing some items such as financing for certain foundations or programs not reaching consensus.
Key features highlighted include increased investment across sectors: health spending will rise by 5.7% compared to last year; pension expenditures will have grown by more than half during Boric’s term; housing investments enable construction targets exceeding 260 thousand homes; police forces will see resources dedicated towards training thousands more officers alongside vehicle renewals; regional governments benefit from mining royalty distributions; infrastructure allocations through Public Works have grown substantially since 2022.
Institutional changes were also incorporated—public agencies must submit quarterly reports regarding improper use of medical leave—and provisions allow authorities flexibility based on future macroeconomic performance data.
With approval secured ahead of schedule amid an election period context marked by cross-party negotiation efforts led primarily through the Ministry, officials expressed satisfaction at delivering what they described as a balanced approach combining continued social investment within disciplined fiscal limits.
