Performance and programme budgeting have become essential tools for governments seeking to ensure that limited public resources are allocated efficiently, transparently, and in ways that achieve measurable results. By shifting the focus from inputs to results, performance budgeting enhances accountability and promotes evidence-based policymaking. Across OECD countries, these approaches are increasingly used to better align resources with policy priorities and to maximise their impact on society.
Chile has long been recognised for its fiscal discipline and prudent management of public finances. Its budgeting framework, grounded in the Constitution and supported by a solid legal basis, establishes clear institutional roles and maintains strong central oversight through the Directorate of Budget (La Dirección de Presupuestos, hereafter ‘DIPRES’)). Over time, Chile has developed a robust system for monitoring and evaluating public programmes, underpinned by well-defined methodologies and analytical tools. This provides a strong foundation for evidence-informed policymaking. Since 2019, DIPRES has strengthened its spending review framework and introducing targeted reviews to better inform resource allocation decisions. In parallel, Chile has established a comprehensive system to support the achievement of strategic objectives and monitor relevant performance indicators.
Despite these strengths, several challenges remain. The budget structure is highly detailed, with thousands of line items, and the extensive use of glosas (budget annotations setting out reporting requirements or specifying how funds must be spent) by Congress and the Executive can undermine oversight and flexibility. Multiple templates for objectives and indicators have led to fragmentation, while some indicators remain vague, process-oriented, or overlapping. Although Chile has made notable progress in enhancing the quality of performance information, further efforts are needed to ensure that this information is relevant, comparable, and actionable.
Chile also benefits from a well-established evaluation framework, although its impact on budget allocation decisions remains limited. Programmes are not always clearly identifiable within the budget structure, which makes it difficult to link evaluation findings directly to funding decisions. DIPRES has introduced new reports to strengthen communication with stakeholders; however, budget documents remain highly technical and challenging for non-specialists, including parliamentarians and citizens, to interpret. The lack of a centralised and user-friendly performance dashboard further limits accessibility and public engagement.
Finally, while DIPRES plays a critical role in ensuring the quality of performance information, its limited capacity constrains deeper engagement with line ministries. This limits the ability to systematically improve indicators, support evaluations, and foster a culture of continuous learning.
The report puts forward a set of recommendations aimed at strengthening the impact of performance budgeting in Chile. These include both short- and medium-term measures designed to enhance the use, quality, and visibility of performance information across the budget process.