Chile centre-right presidential candidate Evelyn Matthei praised Argentina’s austerity drive on Friday, as public spending emerges as a top issue in this year’s election.
It’s crucial to stop Chile’s public debt levels from rising further, Matthei, who is one of the election front-runners, told reporters. She reaffirmed her pledge to slash government spending by US$6 billion, equivalent to 5.6 trillion pesos, if elected.
“In Argentina, they’ve cut spending with a speed and determination that’s incredible,” Matthei said. “Not only are we going to have to go back to having budget surpluses, but we also must have space to spend more on public security.”
While speaking at an event earlier in the day alongside Argentine Deregulation Minister Federico Sturzenegger, Matthei said “what they have done in Argentina has us all inspired,” adding that Chile needs “big” scissors to cut spending.
Argentina recently posted its first annual budget surplus since 2009 following steep spending reductions by President Javier Milei, which have also helped to slow inflation. In Chile, the administration of President Gabriel Boric is facing scrutiny over its management of public accounts and is now lowering expenditures during an election year to meet fiscal guidelines.
This month, Matthei unveiled her campaign priorities including a pledge to double economic growth. Her plan calls for eliminating red tape and encouraging construction while cutting poorly-executed spending.
A survey published by Cadem on Sunday showed 17 percent of respondents supporting the former senator and minister for president. That’s down from 26 percent in December but still places her ahead of other contenders.
The first-round presidential vote will be on November 16 with a potential run-off on December 14. Local laws forbid consecutive terms for any head of state, meaning Boric won’t be able to seek reelection.
by Matthew Malinowski, Bloomberg
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