President Bachelet: “This is a responsible budget with a 4.4% increase in actual spending compared to this year”

Fellow Chileans:

Allow me a moment to tell you about something that is very important for all families and for our country. I am talking about the 2016 public budget. Today the budget bill detailing the Government’s spending plans for next year was sent to Congress.

Just like every other household, in this budget we have identified our priorities and structured our objectives on the basis of what we can realistically achieve. We have taken steps to address the state of our economy. We have defined the things we want to maintain and look after, and the projects and aspirations we want to advance.

This is a responsible budget with a 4.4% increase in actual spending compared to this year.

Next year Chile will continue to progress and we will not be forced to cut spending.

We are all aware that the global economy is facing difficult times. Growth in emerging economies, like Chile, has decelerated. The price of copper, which is so important to our revenues, has fallen significantly. And this affects the resources that are available to the Government.

It is also true that this year our country has been struck by a series of natural disasters. Many of our fellow Chileans have directly suffered the effects and the Government has had to assume unexpected costs.

But I can assure you that we will press on with our commitments and overcome adversity, showing the same determination with which we have faced these disasters, because we want all Chileans to make progress and reap the benefits of their efforts.

The country demands that we create greater equality and more opportunities. But it also demands that we do this responsibly, bearing in mind the more restrictive economic conditions.

This is the only way and these will be our guiding principles.

We are confident that we have the necessary strengths to face the new realities of the global situation. Our key strength is our prudent and efficient fiscal management which for many years has been one of Chile’s defining characteristics.

We will continue advancing, ensuring that our progress is sustained and keeping pace with our economic growth.

People’s rights and social benefits will not be affected. However, we will have to focus our efforts on the most urgent and important tasks; those that were defined in our Government Route Map. And we must redouble our efforts to ensure that every peso we spend goes further.

The most urgent task, without question, is the reconstruction of communities that have been affected by natural disasters. In these areas fellow Chileans are suffering and need the Government’s support. Therefore we will be investing over 321 billion pesos in communities that were affected by the earthquake on February 27, 2010, last year’s earthquake in the north of Chile, the wildfire in Valparaíso, the flooding in the Atacama and Antofagasta regions, the eruption of Calbuco Volcano and the destruction of homes in the recent earthquake in the Coquimbo region.

Aside from this priority, my Government’s main aim is to ensure a good quality education for all children. Therefore, one in every four pesos of the budget increase will be spent on improving our children’s education.

Thanks to the recently approved Inclusion Law and the allocation of additional resources, we anticipate that over 2.17 million students will benefit from priority and preferential subsidies; while more than 1.65 million students will benefit from the changes to school funding which mean they will no longer have to pay for their education.

This is a direct result of our reform. And we will continue strengthening public education from pre-school right through to high school with the same impetus.

As I promised, in 2016 we will take the first steps towards free higher education. Next year students from the 50% poorest households in Chile who are studying at non-profit institutions that are duly accredited and meet the criteria for participation, will not be charged tuition fees.

Next year more than 200,000 students will study for free at universities, professional institutes, and technical training centers that meet these criteria. This is something that all Chileans are striving for and it requires all of us to give our very best for the benefit of our country’s development.
We will also be supporting young people to ensure they have a better chance of entering and remaining in higher education. And we will increase the funding for higher education food grants to include an additional 80,000 students.

We will continue working to provide quicker and better healthcare services for Chileans. We have set aside significant resources to ensure we have enough doctors and specialists in the public health system. This will allow us to hire an additional 750 new specialists and support the training of 1,000 new specialist doctors and for 390 doctors in primary healthcare centers and community hospitals throughout Chile.

This is a real step forwards in terms of reducing waiting lists. We will continue to invest heavily in Primary Healthcare. And we will give the green light to 106 projects, including new Family Health Centers and Specialist Emergency Centers.

In 2016 the Fund for High Cost Treatments will come into effect to cover the costs of diagnoses and treatments, regardless of whether a patient has private or public health insurance. We will also strengthen the Pharmacy Fund to ensure that conditions such as hypertension, diabetes, high cholesterol and triglycerides, for example, are treated free of charge.

And we will continue looking after children’s and young people’s oral health with the “Sembrando Sonrisas” (Sowing Smiles) program. 310,000 under-sixes and more than 77,000 students in their final year of high school will receive free dental treatment. In addition to over 100,000 women who will benefit from the “Más sonrisas para Chile” (More smiles for Chile) program.

Citizens’ safety and peace of mind is and will continue to be a priority for my Government. We will strengthen our police investigations and public order safeguards. With this budget we will be able to work towards our target of having an additional 6,000 uniformed police officers and 1,200 Investigations Police officers, as promised.

The budget includes funding to buy new equipment, vehicles and the latest technology to curb the illegal drug trade. We will extend the Community Safety Plan, which is a joint initiative between the police and local residents, because building solutions is a shared responsibility. And we will continue with the “Juntos más Seguros” (Safer Together) and “Barrios de Alta Complejidad” (High Risk Neighborhoods) policing programs.
Guaranteeing people’s rights and safety requires a solid economic base. Without growth there can be no lasting change. To tackle the period of deceleration currently affecting our economy, we have increased the Economy Ministry’s budget to support more programs to improve productivity, diversify our economy and create more and better jobs.

Funding for entrepreneurs with be maintained and in some case, increased. We have programs for public markets, retail districts, fisheries and tourism, to name but a few. And in 2016, a network of 44 Business Development Centers will be set up throughout Chile offering free advice and support to small businesses.

And in this budget we also wanted to focus on activities that broaden our horizons and enhance community life, such as culture and sports.
The National Culture and Arts Council will see a significant increase in its budget of 13.3%. This will provide a major boost to artistic creation and expression and help promote the culture of Chile’s indigenous peoples.

And in terms of sport, the Comprehensive Sports Schools budget will increase by 14.8%, to promote regular physical activity among children and young people. We will also be supporting initiatives that promote access to sports for women, senior citizens and indigenous groups.

As you can see, this budget will be a good tool for driving forward Chile’s progress and the progress of every Chilean citizen. But higher government spending alone is not enough; we have to use our resources more efficiently. And we are committed to carrying out this budget in an effective, transparent and responsible manner, because these resources belong to all Chileans.

With this budget the Government is doing its part, taking steps to stimulate the economy and acting responsibly. But everyone needs to do their part; business owners, trade associations, workers. Chile’s progress is a task for everyone because Chile belongs to us all!

Finally, I would like to ask Congress to debate this bill with open-mindedness and thinking of the common good. Because every peso of spending proposed in the budget bill is aimed at supporting the progress and specific needs of real Chileans throughout our country.

Thank you very much for listening. Good night.