Chile’s Bachelet Looks to Ensure Her Legacy Even as Debt Rises
- Government to raise spending 3.9 percent next year: Bachelet
- S&P and Fitch both downgraded Chile in the past two months
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Chile’s President Michelle Bachelet announced larger than expected spending plans for next year as she looks to ensure a legacy of improved education and health care, even if that comes at the cost of higher debt.
Fiscal expenditure will rise 3.9 percent, Bachelet said late Sunday, more than the 3 percent many had expected. Still, the budget deficit will narrow to 1.9 percent of gross domestic product from 2.7 percent this year as revenue jumps 7.5 percent, Finance Minister Nicolas Eyzaguirre told lawmakers on Monday.