On Monday July, 9th the Executive branch established the bases of Chilean fiscal policy by means of Decree No. 743. The aim is to reduce the structural deficit in order to achieve a goal of 1.8 percent of GDP in 2018 and reach 1 percent in 2022.

The fiscal policy strengthens the patrimonial situation of the public sector, establishing that “levels of financial assets will be available that will allow the government to face future fiscal commitments, adverse economic cycles and external vulnerabilities associated with exchange mismatches”.

In that sense, the decree indicates that the objective is to”decrease the public debt’s growth rate, thus recovering the country’s risk levels and low credit cost”.