Original article: Grau le devuelve la pelota a Quiroz: niega error en proyección de deuda y cuestiona rebaja a grandes empresas con hospitales bajo recorte

Nicolás Grau Responds to Jorge Quiroz: Denies Debt Projection Error and Challenges Tax Cuts for Large Companies Amid Health Budget Cuts

Former Finance Minister Nicolás Grau addressed criticisms from current minister Jorge Quiroz, firmly denying any miscalculation in his administration’s debt projections for the period 2026-2030. Grau questioned whether the José Kast government’s plan to reduce taxes for large corporations is reasonable, especially at the cost of decreasing funds for hospitals.

In a thread shared on his X account, the former state secretary described Quiroz’s remarks as ‘hasty’ and defended the technical integrity of his latest Public Finance Report (IFP).

Grau elaborated on the factors explaining the difference in the projections without any arithmetic error. He pointed out that an accumulated effective deficit increase of 13 trillion pesos does not necessarily equate to a proportionate rise in debt, as it is also influenced by the exchange rate, inflation, nominal GDP, and other accounting movements.

«The projection is consistent and contains no calculation errors,» emphasized the former minister, reminding that all these components are detailed in the fourth IFP of his administration.

«All this is transparently expressed in our 4th IFP. It demonstrates how each component affects the variation in accumulated debt for each year, between the 3rd and 4th IFP,» he wrote.

Responding to Quiroz’s claim of a 9.5 trillion pesos inconsistency (around $10.5 billion) that could push debt over the prudent 45% threshold by the start of the next decade, Grau argued that macroeconomic projections for four years are based on assumptions. However, he drew a clear line between having “different views” on those assumptions and making a calculation error. “Those differences are not mistakes,” he asserted.

In his publication, Grau highlighted a positive fact that no one disputes: the debt-to-GDP ratio dropped in 2025 compared to 2024, a trend not seen in 18 years.

Grau Challenges Tax Cuts for Large Companies Amid Hospital Budget Cuts

The former finance head redirected the discussion toward two substantive issues that he believes the current IFP overlooks. Firstly, he questioned why the report remains silent on the impact of the major economic-tax reform pushed by Kast and Quiroz on the debt. Then, he posed a provocative question: “Is it reasonable to reduce taxes for large corporations at the cost of cutting hospital budgets (as is currently happening)?”

With this inquiry, Grau critiqued the priorities of the current far-right government, suggesting that the tax cuts for large contributors coincide with a 2.5% budget cut mandated by the Finance Ministry for the Health portfolio, which has a direct social cost that may lead to increased waiting lists and potential difficulties in acquiring clinical supplies and health support programs.