Chile - Public finance



Chile experienced budget deficits from the early 1960s through the mid-1970s. Expenditures grew steadily with the expansion of public-sector participation in social welfare and economic activities and with increasing government investment in development projects; the resulting deficits were covered by Central Bank loans and foreign borrowing. Budgetary surpluses were recorded from 1975 through 1981, after which the pattern reverted to deficits. From 1985 to 1993, Chile reduced its external debt by $11.3 billion through debt-equity conversions.

The US Central Intelligence Agency (CIA) estimates that in 2000 Chile's central government took in revenues of approximately $17 billion and had expenditures of $17 billion. External debt totaled $39.6 billion.

The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.

Chile

REVENUE AND GRANTS 100.0% 17,000
Tax revenue 82.0% 13,934
Non-tax revenue 17.9% 3,045
Capital revenue 0.1% 21
EXPENDITURES 100.0% 17,305
General public services 3.6% 620
Defense 7.7% 1,303
Public order and safety 5.9% 995
Education 18.2% 3,099
Health 12.7% 2,153
Social security 36.2% 6,161
Housing and community amenities 4.0% 685
Economic affairs and services 11.4% 1,934
Interest payments 2.1% 354

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