MercoPress. South Atlantic News Agency

Budget to emphasize “social expenditure”

Chile's 2003 national budget will be “austere” but more resources are to be destined to health, education and combating extreme poverty it was announced by the presidential spokesman last week.

Mr. Heraldo Muñoz said Chilean president Ricardo Lagos had emphasized that the coming budget must give priority to social expenditure and stressed to cabinet ministers the need to "prod and speed" the legislative agenda still pending in Congress.

"We've reassigned the budget meaning lower spending in less priority areas and more in social needs", said Mr. Muñoz.

"Mr. Lagos made it quiet clear to Ministers that each Department must "give priority to those social issues that interest all Chileans".

Mr. Muñóz also revealed that during the cabinet meeting, president Lagos and Ministers analyzed possible political and financial impacts of an armed conflict in the Middle East in the event of an American attack in Iraq. "Even when we're highly dependent on foreign oil, President Lagos and the cabinet concluded that Chile is reasonably protected from an adverse international scenario", said Mr. Muñoz.