Former Finance Minister Mario Marcel appeared before the Chamber of Deputies' Finance Committee to address criticisms from current Secretary of State Jorge Quiroz regarding the state of public funds. During a session lasting over two hours, Marcel dismissed concerns regarding the State's immediate liquidity.
The former official countered arguments from the José Antonio Kast administration, which has pointed to a critical reduction in resources. Specifically, questions were raised regarding the fiscal cash balance of US$46 million at the close of December 2025—a figure that current Minister Quiroz used to argue that the public sector is facing a lack of funding.
“Cash flow is a matter handled between the Treasury and the Budget Office. It is not a central issue: cash flow doesn't matter to anyone except countries that lack access to financing,” Marcel stated, according to reports from latercera.com. The former minister emphasized that organizations like the IMF do not issue reports based on fiscal cash reserves, given that Chile maintains easy access to international credit.
Marcel explained that the US$46 million balance did not affect State operations or the payment of salaries. “Nothing happened to the State. It did not grind to a halt. It did not stop functioning or paying its employees. It caused no specific damage,” he maintained before lawmakers.
Budget and spending adjustments
According to the former minister, the determining factor for public spending is the budget, not available circulating cash. He assured that while the fiscal situation is tight, it should not be confused with a debt or insolvency crisis.
The former official detailed that a 1.7% increase in spending is projected for the current year. He indicated that the current government is seeking to implement adjustments through decrees to formalize cuts, though he acknowledged the difficulty of such measures due to the necessary exceptions required in budget management.
Marcel recalled that his administration at the beginning of Gabriel Boric's term faced even more restrictive financial conditions. “We had to start President Gabriel Boric's government with a situation that was even tighter than this; however, we were able to move forward,” he concluded.
Finally, the former minister addressed the modification of the Fuel Price Stabilization Mechanism (Mepco). Marcel noted that the cost of compensatory measures, combined with the partial operation of the mechanism, has resulted in an expenditure of US$844 million due to the rise in international fuel prices.
