SANTIAGO (Reuters) – Chilean President Sebastian Pinera unveiled an $82.1 billion draft budget for 2022 on Thursday that he said would begin to tame a ballooning deficit in the world’s top producer following more than a year of emergency spending to combat the coronavirus pandemic.

The center-right president stated that the budget will reduce the structural deficit to 11.5% of the gross domestic product by 2021 and 3.9% in 2022 in a live televised speech.

Pinera declared that “This is…a significant step forward in recovering fiscal balance, stabilizing the public debt and strengthening the permanent pillars economic growth of our country.”

Chile’s economy is now recovering from prolonged coronavirus-induced slowdown. This has been helped by an international vaccination campaign as well as a host of government stimulus measures.

Pinera claimed that these measures had caused the 2021 budget to rise by $27billion or 33.7% over what was approved last year by legislators – an amount equivalent to almost 10% of the GDP.

Pinera stated, “This fiscal deficit level and this increase in the debt is not sustainable over the long-term.”

Pinera explained that while the spending would fall by approximately 22.5% on the 2021 total, this budget still has a 3.7% increase in terms of the baseline 2021 budget, approved last year.

Pinera explained that new funding was provided for public works, housing and infrastructure to host the 2023 Pan American Games in Santiago. Healthcare is also a major focus of the budget.

Pinera stated that Chile was among the countries to start administering vaccine shots for COVID-19. It has also secured vaccines needed for 2022.

Pinera stated that funding is also provided to fight the debilitating drought which has affected large parts of northern and central Chile as well as combat climate change.

The budget is now up for review by lawmakers, who have 60 days to approve it.