The acknowledgment of failed fiscal promises by José Antonio Kast comes as Finance Minister Jorge Quiroz admits the government will end its term without achieving fiscal balance, revealing the challenges facing the administration.

In the opening session of the Finance Committee hearings, three prominent economists called into question the validity of the numbers behind José Antonio Kast's massive economic reform, stressing that while investment stimulation is necessary, projected growth and revenue benefits remain uncertain.

The president of the CFA warned during the Senate Finance Committee meeting about a cross-cutting risk in the project due to the misalignment between fiscal costs and benefits. She emphasized that fiscal costs or reduced revenues would appear from the first year of the law, whereas dynamic growth benefits would materialize gradually and with greater uncertainty.

In May, Chile's Consumer Price Index (CPI) rose by 0.2%, leading to an annual inflation rate of 3.9%. This increase was primarily driven by higher costs in housing and transportation, as reported by the National Statistics Institute (INE).

Washington's new proposal to raise import tariffs on Chile to 12.5% is framed as a necessary response to the country's insufficient measures against forced labor, placing it among 54 economies under scrutiny for similar issues.

The mechanics are well-known. First, the fiscal deficit is inflated, or additional debt is sought. Then, it is announced that the State has reached its limit—the notorious 45% of GDP—and that 'there's no money.' Ultimately, surgical cuts are implemented that spare large domestic and foreign companies while targeting health, education, pensions, and subsidies for the populace. Thus, indebtedness becomes a political weapon.

The Monthly Economic Activity Index (Imacec) has revealed a concerning 1.2% drop in April compared to last year, along with a staggering 11.8% decline in the mining sector, challenging the economic recovery narrative put forth by the government of José Antonio Kast.

Unemployment in Chile's Metropolitan Region has surged to 9.7%, exceeding the national average, highlighting ongoing challenges in the local labor market amid stagnant job creation.

In response to finance minister Jorge Quiroz's criticisms, former minister Nicolás Grau categorically denies any calculation errors in his government’s debt projections and questions the wisdom of reducing taxes for large corporations while cutting hospital budgets.

Experts have warned of the uneven impact this increase will have—exceeding initial projections—based on location, income, and type of housing.