On Tuesday, October 6, Finance Minister Jorge Quiroz presented the State of Public Finances before the Special Joint Budget Committee, and Budget Director José Pablo Gómez presented the third-quarter Public Finance Report (IFP). The Finance Ministry lowered its 2026 growth projection to 0.7%, according to CNN Chile; BioBioChile spoke of a range of 0.25% to 0.75%. For 2027 it expects 3.3%, driven by investment. The 2026 structural deficit would be 2.3% of GDP, below the target of 2.6%, and Quiroz anticipated that the fiscal target will be met for the first time in four years, according to DF and La Tercera. Gross debt would close 2026 at 42.7% of GDP and rise to 44% in 2029, according to CNN Chile. Experts cited by BioBioChile doubt that the economy will rebound that much in 2027. DailyDrop could not reconcile the two 2026 figures.
Growth near 0.7% means fewer jobs, less tax revenue and less room to spend. The bet on 3.3% in 2027 holds up the whole Budget: if it is not met, the deficit and debt would be larger than promised.
An economy that grows little leaves fewer jobs and fewer pay rises. With unemployment at 9.6%, this report suggests relief would not come before 2027, if it comes at all.
The government says the economy bottoms out in 2026 and that its reforms and the tax cut will boost investment from 2027.
Skeptical economists and the opposition believe the 2027 projection is too optimistic and that the Budget rests on it.
The number that decides is the 2027 one. If investment indicators do not improve in the coming months, the Finance Ministry will have to revise again. A single downward revision already shows that the outlook is weaker than the one sold in March.
La Tercera, CNN Chile, BioBioChile, DF (Oct. 6, 2026)
Economy · Public financePress ✓ 4 outlets · projections according to La Tercera, CNN Chile, BioBioChile and DF
Finance Ministry cuts 2026 growth to about 0.7%, bets on 3.3% in 2027 and says it will meet the fiscal target
The government projects a structural deficit of 2.3% of GDP and gross debt of 42.7% at the end of 2026. The World Bank, meanwhile, sees growth of 0.8%.
The Budget Office (Dirección de Presupuestos) presented the third-quarter Public Finance Report on Tuesday, October 6, before the Special Joint Budget Committee. The Finance Ministry cuts 2026 growth to 0.7%, according to CNN Chile (BioBioChile speaks of a range of 0.25% to 0.75%), and expects 3.3% in 2027. Minister Jorge Quiroz anticipated that the fiscal target will be met for the first time in four years, according to DF.
The 2026 structural deficit would be 2.3% of GDP, below the target of 2.6%, and gross debt would close the year at 42.7%, according to La Tercera and CNN Chile. Experts consulted by BioBioChile doubt the 2027 projection. DailyDrop could not reconcile the two 2026 figures.
Open the story and DailyDrop’s take
By the numbers
0.7%projected 2026 growth (CNN Chile)
3.3%projected 2027 growth
2.3%2026 structural deficit, % of GDP
On Tuesday, October 6, the Puerto Montt Court of Appeals unanimously (3 votes to 0) confirmed the stripping of immunity of Senator Miguel Ángel Calisto at the request of the Prosecutor’s Office. It is the case of fraud against the treasury: according to the Coyhaique Prosecutor’s Office, between 2018 and 2022 he allegedly acted with his former campaign manager and the latter’s wife to defraud the State with fictitious parliamentary consulting contracts; there are eight defendants. Calisto had already been stripped of his immunity as a deputy and regained it on taking office as a senator. He said he was “very calm” and announced he will appeal to the Supreme Court. He will be suspended only if the stripping of immunity becomes final. El Mostrador noted that the ruling weakens Kast’s majority in the Senate. The stripping of immunity is not a conviction: it is the step that allows him to be charged.
A senator with an open criminal case weakens the bloc that supports the government in an upper chamber where votes are tight, just as the Budget and the security agenda are under discussion.
There is no direct effect on your life, but every vote counts in the Senate. If the stripping of immunity becomes final and Calisto is suspended, it would change the vote math in the coming weeks.
The Prosecutor’s Office and the judges say the evidence is serious and that the case should go to trial.
Calisto maintains that the accusation is false and appeals to the Supreme Court; the presumption of innocence remains in force.
What to watch is the timeline of the appeal at the Supreme Court. If it is confirmed, the Senate would be left with one fewer vote in the governing bloc. Until then, it is a case at the investigation stage.
Emol, BioBioChile, Cooperativa, T13, El Mostrador (Oct. 6, 2026)
Politics · JusticePress ✓ 5 outlets · account according to Emol, BioBioChile, Cooperativa, T13 and El Mostrador
Court unanimously confirms stripping of immunity for Senator Miguel Ángel Calisto over fraud against the treasury
The Puerto Montt Court of Appeals unanimously confirmed, by 3 votes to 0, the stripping of immunity (desafuero) of Senator Miguel Ángel Calisto, requested by the Prosecutor’s Office, in the case of fraud against the treasury, according to Emol, BioBioChile, Cooperativa and T13. It is the second time he has lost his immunity: he had already been stripped of it as a deputy. Calisto said he was “very calm” and announced he will appeal to the Supreme Court.
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Word of the day
stripping of immunityremoving immunityA court decision that allows a legislator to be prosecuted. It is not a conviction: it opens the way to charging him and, if it becomes final, suspends him from office.