Chile Finance Minister Backs Off Key Budget Goal as Debt Rises

Chile’s Finance Ministry ditched its goal of balancing the so-called structural budget by 2030 on Tuesday, as the administration struggles to replenish fiscal coffers amid an economic downturn.

The government is now targeting a structural deficit — which takes into account cyclical effects such as copper prices and economic fluctuations — of 1.5% of gross domestic product at the end of its term in four years, according to its fiscal policy decree.

Asked directly during a press conference if the administration was admiting that it wouldn’t achieve its target of a balanced budget, Finance Minister Jorge Quiroz replied, “obviously, that’s ...