According to the budget for 2013, presented to the Legislature, capital expenditures by the central government will amount to $675 million, 8% less than what was authorized in the 2012 budget. Taking into account the 5% inflation forecast for next year, the actual drop is 13%.

"Capital expenditures include money that the Government allocates to works such as roads, buildings, repairing facilities, land, machinery and equipment", reports Nacion.com.

The vice minister of Expenses at the Ministry of Finance, José Luis Araya, responding to consultations on the reasons for the cuts, said that this budget does not include external loans to finance infrastructure and it is with these loans that the government plans to carry out more investments.

Source: Nacion.com

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