Chilean government abandons zero-deficit plan after protests
The government of Chile's new right-wing President Jose Antonio Kast backed away from a campaign promise to erase the budget deficit after encountering strong resistance to its belt-tightening measures.
Setting out the fiscal policy of Chile's most right-wing government since the 1973-1990 military dictatorship, Finance Minister Jorge Quiroz said he aimed to reduce the deficit progressively from 3.6 percent last year to 1.5 percent in 2030.
Kast had initially promised to balance the budget by slashing public spending by 4 billion dollars.
Since taking office three months ago, he has cut spending across the government and ended fuel price subsidies, leading to spiraling costs at the pump.
