Structural Balance Policy in Chile

Abstract

This article seeks to assess the results of the structural surplus rule over the past six years, during which it has served as the basis for drawing up and implementing the public sector budget. To this end, Section 2 describes the methodology currently in use to calculate the structural balance, looking particularly at the improvements introduced in the last few years, while Section 3 sets out the main results and implications of the six years during which the structural balance policy has been in force. In Section 4, the main aspects of the Fiscal Responsibility Law as it relates to the structural balance policy are summarised, while Section 5 identifies the future challenges for the implementation of this policy.