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Government reduced public spending in US$450 million dollars

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The finance minister, Rodrigo Valdés, provided the details of the fiscal adjustment, explaining that the cutback will be of US$450 million, amount equivalent to $380.000 million pesos.

This means that public spending will be reduced in 1% in relation to the budget approved in 2015.

“President Bachelet has requested the reduction of the public spending in 1%, this is $380.000 million pesos, that is US$450 million dollars”, Valdés pointed out.

In addition the minister explained the decision was taken due to the significant falling of the copper prices.

Regarding to the red metal prices, Valdés highlighted the persistance and the cyclical condition of this phenomenom, and explained that in the long term will affect to the structural incomes, on the order of 1 point of the GDP.

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