Chile: Additional revenues related to the tax reform allowed Government to meet goals during 2014

Summary

Fiscal expenditures increased 15.6% YoY in December 2014 (+6.5% in 2014), with higher contribution from public investment. Fiscal revenues rose to 10.5% YoY in December 2014, reaching an average increase of 1.5% during last year. Additional revenues related to the tax reform accounted for 0.3% of GDP, meeting government's estimate. In contrast to the under-execution of budget during the last three years, in 2014 the budget was over-executed by 2.1% of total planned expenditures. With this figures, fiscal balance reached an effective deficit of 1.6% of GDP in 2014, equivalent to a cyclically adjusted deficit of 0.5% of GDP.

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