Chilean Finance Minister Jorge Quiroz defended the economic projections of the National Reconstruction Plan during a session with the Chamber of Deputies' Finance Committee on Thursday.
Appearing before lawmakers, Quiroz addressed the financial targets and goals outlined in the legislative proposal signed by President José Antonio Kast earlier this week.
According to cnnchile.com, the minister faced intense questioning regarding a proposed tax increase for small and যাইতেছে medium-sized enterprises (SMEs), which would rise from 12.5% to 23%.
Lawmakers also pressed the minister on the projected impact of a new tax credit designed to encourage formal hiring.
Quiroz stated the primary goal of these measures is "to create some 600,000 to 650,000 jobs, depending on how the workforce grows."
Through these adjustments, the government expects to reduce the current unemployment rate from 8.3% to 6.5%.
Fiscal surplus projections
Some members of the Finance Committee challenged the ministry's long-term fiscal balance estimates.
The plan projects the country will achieve a fiscal surplus by 2035, eventually reaching US$5.631 billion, or 1.21% of GDP, by 2050.
Quiroz rejected claims that the figures were unrealistic, asserting, "Our estimates are not fiction, but are based on the report prepared by the Marfán Commission."
He added that the figures represent "the best estimates that can be made with the available information."
To expedite the legislative process, Quiroz agreed to a request from Finance Committee President Agustín Romero (Rep) to form a joint technical working group.
This group will collaborate with the Ministry of Finance to refine the project's specific details during the upcoming legislative period.
