The Chilean government has announced its commitment to achieving its fiscal target and containing expenditure growth. The fiscal target aims to reduce the structural balance by 0.2 percent of GDP for each year of the four-year Presidential term from 2018–21. To achieve this target, the government announced a four-year consolidation plan to gradually reduce expenditure each year by approximately US$1.1 billion to realize a total of US$4.4 billion in savings over the period.1 The government has achieved its 2018 structural balance target. To help meet its goals in the coming years, and to find fiscal space for the President’s program, the government is adopting a new tool, spending reviews (SRs).
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