Chile plans 4.2% budget spending boost, President Boric says

SANTIAGO, Sept 30 (Reuters) - Chile's government will propose a 2023 budget on Friday that President Gabriel Boric says will increase public spending by 4.2% from the previous year in an effort to boost an economy slowing from its rapid post-pandemic recovery

The project is focused on promoting public and private investment, with an expected 5.5% increase in public investment. It also expands social benefits including pensions, health and education, the president said in a televised speech on Thursday night.

"It is intended to concretely solve people's problems with a solid foundation of fiscal responsibility," Boric said without disclosing the exact size of the budget.

"Against a backdrop of lower tax revenues due to the adjustment of the economy, we will maintain an increase in spending, ensuring the continuity of good public policies."

The government also proposed increasing resources for public safety and security by 4.4%.

"In terms of public security, we are facing a crisis that is altering the daily lives of Chilean families," Boric said, adding that the resources will be used to combat organized crime, drug trafficking and to increase police presence.

The government will deliver its budget bill to Congress on Friday and lawmakers have 60 days to study it before deciding whether to give their approval. (Report by Natalia Ramos Writing by Alexander Villegas Editing by David Goodman)