Original article: Adultos mayores bajo la tijera de Quiroz: Hacienda propone recortar o eliminar programas por $427 mil millones

Finance Minister Quiroz Proposes Significant Cuts to Programs for Chile’s Seniors Worth $427 Billion

Finance Minister Jorge Quiroz has targeted Chile’s senior citizens with a series of budget cuts that, according to official documents reviewed by CIPER, amount to $427 billion in funding for nine crucial programs benefiting over 900,000 individuals.

The measure, set to be implemented gradually starting in 2027, includes a $318 million reduction to the National Senior Adult Service (Senama) budget and an additional $310 million cut to the Senior Participation and Training Program.

These proposed cuts initiated by the Secretary of State are detailed in a circular dated April 21, where the Finance Ministry aims to discontinue or reduce by at least 15% several critical initiatives such as the Solidarity Pension Contribution for the Elderly (APSV), the Complementary Nutrition Program for Older Adults, protective and community residences for seniors, the ELEAM subsidy fund, the Golden Weddings Bonus, and the Housing and Support Program. The document also recommends eliminating the More Self-Sufficient Older Adults program, which serves 183,000 people and had received positive evaluations in its initial design.

The ministries of Health, Labor, and Social Development—responsible for these benefits—were consulted by CIPER regarding Quiroz’s proposed cuts. The Ministry of Social Development stated it will not implement immediate reductions, but will evaluate the programs’ designs. More decisively, the Undersecretariat of Social Security, part of the Labor ministry, reminded that “social benefits granted by law can only be modified by another law.”

This undersecretariat dismissed the binding nature of Quiroz’s memo, characterizing it as “suggestions and recommendations,” but acknowledged that the government aims to streamline resources, citing fiscal constraints, and will conduct data cross-checks to ensure compliance with legal requirements.

Meanwhile, the Ministry of Health did not respond.

Legal Reform Needed for Pension Cuts in the Distribution System

Former Superintendent of Pensions, Álvaro Gallegos, warned to CIPER that any cut to pensions within the distribution system—affecting 546,000 people—would necessarily require a legal reform, as these are acquired rights.

He reminded that the last similar intervention occurred in 1985 under Minister Hernán Büchi. A similar situation confronts the APSV, a supplement for the most vulnerable 60% of the population still claimed by 156,000 individuals, whose budget would see a reduction of $66 billion.

Quiroz’s Budget Cuts Lack Technical Justification

Perhaps the most concerning element is the absence of technical support for these measures. Similar to the case with the Universal Guaranteed Pension (PGU)—which Quiroz also proposed cutting despite electoral promises made by President José Antonio Kast—the recommendations for programs benefiting seniors lack backing from economic reports or the Budget Directorate (Dipres).

For instance, to eliminate the More Self-Sufficient Older Adults program, there is no prior evaluation recommending its discontinuation; on the contrary, reports highlighted increased coverage and only noted the need for improved targeting.

In the case of the Complementary Nutrition Program for Older Adults—which serves 900,000 people—the latest Dipres report for 2024 reveals it already faces a financial deficit due to unexpectedly high demand, meaning that any cuts would further hinder access to essential fortified foods necessary to prevent nutritional deficiencies and promote healthy aging.

Despite the lack of arguments, funding for these programs is under threat from Quiroz’s budget cuts, which are impeded only by the need for legal modifications.