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10:43 PM UTC · SUNDAY, APRIL 26, 2026 LA ERA · Global
Apr 26, 2026 · Updated 10:43 PM UTC
News

Hacienda budget proposals trigger political firestorm over social and environmental programs

A leaked Treasury directive proposing the discontinuation of 15 government programs, including school nutrition and human rights initiatives, has ignited a national political crisis.

Isabel Moreno

3 min read

Finance Minister Jorge Quiroz faces intense backlash following the leak of a Treasury directive dated April 21, 2026, which outlines a proposed 'change of paradigm' in public spending for the 2027 fiscal year. The document, sent to various ministries, suggests the discontinuation of 15 programs and the adjustment of 42 others, citing poor performance evaluations by the Budget Office (Dipres) as the primary justification.

Among the most controversial recommendations is the termination of the Human Rights Program under the Ministry of Justice. According toLa Tercera, this unit is responsible for executing the National Search Plan for victims of human rights abuses. While Justice Minister Fernando Rabat and Subsecretary Pablo Mira have publicly stated the program will continue, human rights advocates toldEl Mostradorthat the proposal mirrors past economic strategies used to block state intervention in sites like Colonia Dignidad, signaling a potential move toward institutional impunity.

Controversy over the program is compounded by recent shifts in policy within the Justice Ministry. Reports indicate that the current head of the Human Rights Program, Constanza Garrido, recently instructed legal staff not to appeal in cases where individuals convicted of crimes against humanity are seeking the substitution of their prison sentences for medical reasons. This pivot has drawn sharp criticism from the human rights community, who view the Treasury's budget proposal as an extension of this new, less restrictive approach to state litigation.

Beyond justice, the Treasury’s directive targets the 'soft infrastructure' of the environmental sector.El Mostradorreports that the proposal seeks to eliminate five programs essential for territorial management, including species conservation, wetland protection, soil recovery, school environmental certification, and noise fiscalization. Experts warn that these cuts would reduce the state's capacity to mitigate climate-related risks and address community health hazards.

In the health sector, the proposed adjustments target primary care, with over $300 billion in programs slated for potential elimination. According toEl Mostrador, the list includes critical services such as hospital-at-home care ($82.6 billion), the Pharmacy Fund (FOFAR, $51.7 billion), and various mental health and dental programs. Critics argue that removing these 'first-line' services will inevitably increase the burden on the hospital system and disproportionately affect vulnerable populations.

Education programs also faced immediate scrutiny after the School Feeding Program (PAE) was included in the list of initiatives to be discontinued. Former presidential candidate Evelyn Matthei criticized the move on social media, stating, 'For many children, this is the only meal of the day. With that, you do not play.' The PPD party went further, with secretary-general José Toro declaring that Minister Quiroz is no longer a 'valid interlocutor' for reforms, characterizing the proposal as an attempt to import austerity models reminiscent of the dictatorship era.

Minister Quiroz held a press conference at La Moneda on Friday to address the mounting outcry. He insisted that the document is merely a technical recommendation based on annual Dipres performance monitoring and does not represent a formal policy decision. 'There is no decision to discontinue or terminate any program; it is an office, and there is no budget adjustment decree yet,' Quiroz stated, as reported byLa TerceraandCNN Chile.

Quiroz explicitly ruled out any reductions to school nutrition or student grants, emphasizing that final budget authority rests with individual ministries. He maintained that the Treasury's role is simply to provide guidance based on objective performance data within a broader context of fiscal tightening. Despite these assurances, the political fallout continues as opposition leaders demand greater transparency regarding the government's long-term spending priorities.

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