Amid the debate over the 2027 Budget bill, senator and president of the Socialist Party (PS), Paulina Vodanovic, questioned this Saturday the reduction of funds allocated to Regional Governments. The proposal presented by President José Antonio Kast's government contemplates a 4.8% reduction in the total budget of regional governments, equivalent to roughly 90 billion pesos less than in 2026, according to figures from the Budget Directorate (Dieres). "In the subcommittee that is analyzing the Regional Governments' budget, we have once again said that the regions cannot suffer reductions in their income," the PS leader questioned. "Here we must seek maximum unity so that it is understood that decentralization depends on there being sufficient resources in each of the regions of our country," she added. Vodanovic expressed her concern about the cuts in the Maule Region. "In Maule they intend to cut more than 8 billion pesos from the Regional Government, and we cannot allow that," she stated. In that regard, the PS leader said she will seek political backing to reverse the situation during the legislative process. "As senator for Maule, I will seek support across the board so that the government changes this bad decision," she noted.
Budget cuts in other regions
Concern over the 2027 Budget reduction spread to other regions of the country. The Association of Regional Governors of Chile (Agorechi) warned that the cuts could reach between 10% and 20% in certain regions, depending on the basis of comparison used. Specifically, the authorities have expressed concern about the possible effects on infrastructure, security, employment, and social programs. The president of Agorechi and governor of Valparaíso, Rodrigo Mundaca, emphasized during the session of the fourth joint budget subcommittee that the governors have "many contradictions" with the position of Dipres. "It is a proposal that does not address security, employment, or growth issues; quite the contrary, it is a budget proposal that deepens unemployment in Chile. All the regional governors are against this proposal," he stated at the session.