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The Budget

The budget is developed through a detailed process of analysis, formulation, inquiry, discussion and authorization among the participating actors and institutions. In order to ensure its adherence to long-term financial and economic goals, the process since 2000 has been carried out in accordance with the structural surplus rule that requires generating a budget surplus equal to 0% of the Gross Domestic Product (GDP).

This means that the government takes into account its actual long-term funding capabilities in its budget decisions, allowing it to avoid commitments based on temporary revenue windfalls, such as when the price of copper or economic growth exceed sustainable averages. To make this process as transparent as possible, a commission of external experts is consulted on long-term copper prices and on the economy’s potential output level and these figures are included in the estimates to ensure that expenditures are compatible with the structural surplus rule.

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