Chilean Budget Panel Approves Congressional Funding Amidst Controversy Over Presidential Perks
A mixed Budget subcommittee in Chile approved funding for the National Congress, but not without a heated debate over allowances for former presidents, including provisions that could provide a lifetime pension for current President Gabriel Boric starting at age 40.
The subcommittee, comprised of deputies and senators, unanimously approved the budget for the Chamber of Deputies before encountering resistance regarding the Senate’s allocation. The core of the dispute centers on approximately $17.6 million in gross monthly funds allocated to former presidents since 2000, when heads of state gained lifetime Senate status.
This figure breaks down into $7.3 million for per diem payments – essentially personal income – and $10.3 million to cover office expenses, staff, and travel allowances. The controversy intensified with the Ministry of Finance’s inclusion of an additional 151 million pesos for 2026, earmarked for benefits President Boric would receive upon leaving office on March 11th. While the initial allocation covers only nine months of Boric’s post-presidency, the funds are designed to be renewed annually for each outgoing president.
“This is essentially a pension for life, starting at the age of 40,” a source familiar with the budget negotiations explained, highlighting the sensitivity of the issue. The government defended the funds as a permanent legal expense, arguing that, according to the Constitution, they could not be rejected.
However, opposition Deputy Miguel Mellado challenged this interpretation during Wednesday’s session. He argued that while the Constitution guarantees the per diem payments, the broader allocations should be subject to a separate vote as variable expenses. “It should be deleted from the Budget, we should vote on it separately. It is done without a budget gloss. It is not regulated anywhere,” Mellado stated.
Raul Guzman, the Secretary General of the Senate, countered that the institution possesses “a certain freedom and autonomy in financial administration” and that agreements reached within the Regime Commission since 2007 support these payments. This explanation failed to appease Mellado, who maintained that the practice lacked a solid legal foundation. “It is debatable, it requires legality. No matter how much jurisprudence there has been, we are committing something that is not legal,” he replied.
Mellado’s request to vote on the allocations separately was denied by subcommittee president Deputy Boris Barrera (PC) and a majority of the body, including Senator José García (RN). Faced with no alternative, Mellado cast the sole dissenting vote against the Senate budget. Deputies Ximena Órdenes (independent-PPD) and Juan Santana (PS), along with Barrera and García, approved the resources.
Despite the setback, Mellado vowed to pursue a reversal of the decision in the Chamber, noting that even within the ruling party, concerns exist regarding the funds designated for Boric. The subcommittee subsequently approved budgets for the Library of Congress and the Parliamentary Appropriations Council.
However, questions remain regarding the funding mechanism for the 1% employer contribution mandated by recent pension reforms. As a result, the subcommittee agreed to formally request clarification from the Budget Directorate. The debate underscores ongoing tensions surrounding presidential benefits and budgetary transparency in Chile.
