Former Secretary of State Mario Marcel appeared before the House of Representatives' Finance Committee this Tuesday to present an overview of the nation's public finances. During his testimony, the economist dismissed the notion of an impending fiscal crisis, though he did acknowledge ongoing tensions within the state's accounts.
“We have a tight fiscal situation, but that is very different from a crisis,” Marcel stated during a press briefing, according to cnnchile.com. The former minister emphasized that this assessment should serve as a starting point for the incoming administration.
Marcel described the legislative session as “very productive.” According to reports from cnnchile.com, the former secretary valued the debate for its ability to “clarify many figures and data points, and place the fiscal situation where it belongs.”
Expenditure management and budgeting
The economist explained that the management of public resources does not depend on daily cash flow, but rather on budgetary planning. “It is not about how much cash is in the vault on a given day or month; it is the budget that matters,” he noted.
For the current year, fiscal spending is projected to grow by 1.7%. However, Marcel warned that implementing adjustments or spending cuts is not a simple process, given that various exceptions have already been applied during execution.
“It is not that easy to adjust, it is not that easy to cut,” the former Secretary of State indicated. Despite the limited resources, he maintained that a constrained fiscal scenario does not prevent the State from being able to act.
To support his position, he recalled the current administration's management. “We had to take office under President Gabriel Boric with a fiscal situation even tighter than this, and yet, we were able to move forward,” he added.
Finally, the former minister declined to comment on the performance of the current Finance Minister. When asked, Marcel remarked that “it is neither very elegant nor very fair for a former minister to judge the management of a minister currently in office.”
