INTERVIEW | Navy and Army Warn of Economic Difficulties: Is There Money Until the End of the Year?

The Chilean Army is facing one of its most delicate budget crises in recent years.

The Commander-in-Chief, General Javier Iturriaga, warned Congress that the institution does not have the necessary resources to finish the year, with a deficit exceeding 40 billion pesos.

The situation is explained —he said— by three factors: first, the cuts approved by Congress in the Defense budget, amounting to about 16 billion; second, the salary increase for conscripts, which was not accompanied by the promised additional funds; and third, the extraordinary deployments on the northern border and in the southern macrozone, which have resulted in an additional 14 billion in operational expenses without coverage.

For now, the Army has had to implement containment measures: suspending the retraining of reserves, postponing bonuses, and halting new hires.

In the remuneration item, the deficit has already reached 19 billion, and in payments to conscripts, another 5 billion.

Defense Minister Adriana Delpiano ruled out a financial collapse.

She stated that “there is no structural deficit” and that the budget for the Armed Forces “is fully covered,” despite the increase being only 0.3 percent for the next year. She added that pending payments in the southern macrozone are already being processed.

In parallel, President Gabriel Boric announced a new military reinforcement plan at the northern and southern borders, incorporating technological means and redistributing troops to strengthen migration control and territorial security.

The President assured that this decision “does not imply militarization, but rather the protection of national territory with respect for human rights.”

However, this crisis has a phrase that puts pressure on the Executive. This follows General Iturriaga’s own summary, which now resonates in La Moneda and Congress: “We are not in a position to finish the year.”

In this edition of Tema del Día, hosted by Néstor Aburto, we spoke with security and defense analyst Marcelo Masalleras, a former Army colonel and member of the AthenaLab think tank.