In 2024, the Federal Deficit of the United States reached 1.8 billion dollars (five times the GDP of Chile). Given this crisis, and days after being elected, President Trump resorted to Elon Musk, the richest man in the world, to create the Government Efficiency Department (Doge). From the first day in the Administration, Musk initiated an aggressive restructuring of the state apparatus, beginning with the closure of the United States Agency for International Development, a drastic reduction of the Department of Education and the taking of control of the General Services Administration, responsible for the technological infrastructure of the Government. and showing lack of respect for those who perform their function with commitment and diligence. What Musk does not consider is that a truly efficient state should attract and retain the best talents, not scare away. With the treatment that this administration is giving them, it becomes unlikely that this happens. I do this situation and compare with the local. In Chile, tax accounts are going through a severe crisis, similar to that of the United States, but with a much more fragile economy. In 2024, not only the structural adjustment goal was breached – despite being a legal requirement – but the gross debt of the government exceeded 42% of GDP. On the other hand, during the current administration, the deficit has increased by more than three percentage points, placing Chile among countries with the highest fiscal imbalance in the region. This deterioration is not an isolated phenomenon. As a result, the interests of the external debt could reach 4 billion dollars in the next government, putting the timely payment of our obligations at risk. In addition, in the medium term, the product of a potential change in the country's rating, local interest rates could be fired, more expensive mortgage loans up to 30%. Compared to the situation 15 years ago, when the debt represented only one digit, the contrast is drastic and is clearly linked to the expansion of the State, whose size went from 20% to 27% of GDP in the same period. The debt, by itself, is not the problem; Its impact depends on the use that is given. However, when analyzing statistics, the perception that public employment has grown disproportionately persists, without translating in a tangible improvement in the quality of life of the most vulnerable. Thus, suspicions arise about an unnecessary increase in public employees, and even of gnocchi – a term originated in the Italian tradition and that became popular in Argentina to describe public officials who barely appear on the day of payment. While in Chile there are few indications of this practice and we are far from the magnitude of the inefficiencies observed in the neighboring country, there is still a nebula on the real number of public employees, or talk about disaggregations for service. General government spending has grown from 5% of GDP 15 years ago 7% of GDP in 2023, a 30% growth, strange in the middle of the automation era. To this is added labor absenteeism, which in the same period grew more than 40%, coming to average a month of absenteeism by official! Although the American example is extreme, it would be interesting to evaluate the impact of fiscal expense on the efficiency of the State and in the quality of life of Chileans, which is equivalent to measuring the productivity of the public sector. The State should have a key role in the promotion of productivity, not only through policies that promote efficiency in the private sector, but also giving the example in the administration of public resources. However, this issue has remained absent from the public debate: productivity is not measured periodically or disaggregated, which prevents knowing how it has evolved and in which areas or organisms there are greater opportunities for improvement. Given this information vacuum, it is urgent to develop indicators that allow evaluating efficiency in various fields of state management. To achieve it, I propose periodically calculating the productivity of the public sector, and using this indicator to determine the payment of performance bonds, replacing the anachronistic current system. For example, you could leave with four sectors: education, health, housing and transport. These sectors represent more than 40% of total fiscal expenditure, and have a strong impact on the quality of life of the population. Subsequently, this calculation and study could be expanded to other areas, and even evaluate each institution or execution unit-hospitals, schools, Seremis, among others-in greater detail. Affairs, the Chileans do not have to choose between the Musk-Trump chainsaw and the gnocchi, but we must understand that reducing the deficit eliminating the inefficiency of the state is an urgent moral imperative. After all, it never hurts to remember that each wasteful weight – professional effort of the workers who pay taxes – limits the opportunities of those who most need a more just society and with greater possibilities of progress.Marcelo Villena He is director of the Business School of the Federico Santa María Technical University
