Chile’s 2012 draft budget sets out a 5% increase in public spending with no offsetting rise in taxes. On first inspection we would caution that some of the assumptions look to be too optimistic. Nonetheless, Chile’s healthy balance sheet means that a moderate fiscal expansion is unlikely to store up any problems for the future, and may be a good thing in the context of near-term external weakness.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.