Ministry of Finance (Chile) facts for kids
The Ministry of Finance of Chile (called Ministerio de Hacienda in Spanish) is a very important government office in Chile. It's like the country's chief financial manager. This ministry handles all of Chile's money matters. It plans, guides, and controls how the government spends and earns money. It also looks after Chile's financial markets.
Since March 2022, the person leading the Ministry of Finance is Mario Marcel.
Contents
History of the Ministry
The idea for a finance office in Chile started in 1814. At that time, Chile was just becoming independent from Spain. The leader, Bernardo O'Higgins, wanted to set up a proper government. He saw the need for an office to manage the new nation's money.
The "Secretariat of Finance" was officially created on June 2, 1817. Hipólito de Villegas was the first person to lead it. The way the Ministry works today, and its main duties, were set by a special law on November 30, 1927.
What the Ministry Does
The Ministry of Finance has many key jobs. These jobs help keep Chile's economy strong. Here are some of its main responsibilities:
- Managing the government's money plans.
- Collecting and handling all public money.
- Keeping track of the government's financial records.
- Studying rules for trade and helping with trade agreements.
- Dealing with laws about money, banks, and credit.
- Watching over companies, stock markets, and insurance.
- Handling government loans and presenting money plans to Congress.
- Creating and studying the country's yearly budget and spending reports.
The Ministry works with several other important groups. Some are "related" and some are "dependent."
Related Institutions
These groups work closely with the Ministry:
- BancoEstado (a state-owned bank)
- Government Procurement Directorate (handles government buying)
- Civil Service Directorate (manages government workers)
- National Customs Service (deals with goods entering and leaving Chile)
- Internal Tax Service (collects taxes)
- Public Purchasing and Recruiting Department
- Superintendency of Banks and Financial Institutions (oversees banks)
- Superintendency of Securities and Insurance (oversees stocks and insurance)
- Superintendency of Game Casinos (oversees casinos)
- Financial Analysis Unit (looks into financial crimes)
Dependent Institutions
These groups are part of the Ministry:
- Budget Office (helps plan the government's budget)
- General Treasury of the Republic (manages government funds)
How Chile Manages Its Money
Chile has a smart way of managing its money. It's called a "counter-cyclical" policy. This means the government saves money when the economy is doing well. Then, it can use those savings when the economy slows down. This helps keep things stable.
Since 2001, Chile has used a "structural balance" policy. This policy helps the government plan its spending based on long-term income. It doesn't just react to daily ups and downs. For example, it considers how copper prices (a big part of Chile's income) affect money over time. This way, spending can increase when the economy is weak and decrease when it's booming.
In 2005, these smart money rules became law. This law is called the Fiscal Responsibility Law.
Chile's Savings Funds
The Fiscal Responsibility Law also created two special savings accounts for the country. These are called "sovereign wealth funds":
- Pension Reserve Fund (PRF): This fund saves money for future retirement payments. It helps make sure there's enough money for older people. By the end of 2012, this fund had over $5.8 billion. It gets new money every year from the government's extra funds.
- Economic and Social Stabilization Fund (ESSF): This fund helps keep government spending steady. It provides money if there's a budget shortfall or if the government needs to pay off debts. By the end of 2012, this fund had almost $15 billion. Any extra money the government has after contributing to the PRF goes into this fund.
The Central Bank of Chile manages these funds. A special committee gives advice on how to invest the money.
Taxes in Chile
The main ways Chile collects money are through two types of taxes:
- Value Added Tax (VAT): This tax is added to the price of most goods and services you buy. In 2012, it made up about 45.8% of all government income. The rate is usually 19%.
- Income Tax: This tax is collected from people and companies based on how much money they earn. In 2012, it made up about 41.8% of all government income. Companies pay a tax on their profits. Individuals also pay tax on their income, with higher earners paying a higher percentage.
There are also other taxes. These include special sales taxes on things like alcohol and luxury goods. There are also taxes on tobacco and fuel. Other taxes include inheritance tax and customs duties on imported goods.
In 2012, the government spent about 21.5% of the country's total economic output (GDP). It collected about 22% in revenues. Chile's debt was low, which is a good sign of a strong economy.
Because Chile manages its money carefully and has low debt, it has a very good credit rating. This means other countries and banks see Chile as a safe place to lend money. Chile has one of the highest credit ratings in Latin America.
List of Ministers of Finance
Patria Vieja period
Ministers of finance
Picture | Name | Entered office | Exited office | Notes | Appointed by |
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Hipólito de Villegas y Fernández | 7 September 1817 | 30 March 1818 | Bernardo O'Higgins | |
Anselmo de la Cruz y Bahamonde | 30 March 1818 | 14 April 1818 | |||
José Miguel Infante y Rojas | 14 April 1818 | 27 June 1818 | |||
Anselmo de la Cruz y Bahamonde | 27 June 1818 | 2 May 1820 | |||
José Antonio Rodríguez Aldea | 2 May 1820 | 28 January 1823 | |||
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Agustín Vial Santelices | 28 January 1823 | 8 April 1823 | Government Junta | |
Pedro Nolasco Mena y Ramírez Rivilla | 8 April 1823 | 12 July 1823 | Ramón Freire | ||
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Diego José Benavente Bustamante | 12 July 1823 | 22 February 1825 | ||
José Ignacio Eyzaguirre Arechavala | 22 February 1825 | 18 June 1825 | |||
Rafael Correa de Saa Lazón | 18 June 1825 | 8 October 1825 | |||
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Diego José Benavente Bustamante | 8 October 1825 | 17 October 1825 | ||
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Manuel José Gandarillas Guzmán | 17 October 1825 | 9 September 1826 | ||
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Agustín Vial Santelices | 12 September 1826 | 20 October 1826 | Agustín Eyzaguirre | |
Melchor de Santiago Concha y Cerda | 20 October 1826 | 22 October 1826 | |||
Ventura Blanco Encalada | 8 March 1827 | 23 July 1828 | Reappointed | Ramón Freire | |
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Francisco Ruiz-Tagle Portales | 23 July 1828 | 16 July 1829 | Francisco Antonio Pinto | |
Manuel José Huici | 16 July 1829 | 9 November 1829 | Francisco Ramón Vicuña | ||
Pedro José Prado Montaner | 9 November 1829 | 7 December 1829 | |||
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Mariano Egaña Fabres | 20 February 1830 | 18 March 1830 | Francisco Ruiz-Tagle | |
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Juan Francisco Meneses Echanes | 18 March 1830 | 15 June 1830 | ||
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Manuel Rengifo Cárdenas | 15 June 1830 | 9 November 1835 | José Tomás Ovalle | |
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Joaquín Tocornal Jiménez | 9 November 1835 | 14 April 1841 | José Joaquín Prieto | |
Rafael Correa de Saa Lazón | 14 April 1841 | 18 September 1841 | |||
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Manuel Rengifo Cárdenas | 18 September 1841 | 10 April 1845 | Manuel Bulnes | |
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José Joaquín Pérez Mascayano | 10 April 1845 | 22 September 1846 | ||
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Manuel Camilo Vial Formas | 22 September 1846 | 9 May 1848 | Interim | |
Salvador Sanfuentes Torres | 9 May 1848 | 12 June 1849 | Interim | ||
Antonio García Reyes | 12 June 1849 | 19 April 1850 | |||
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Jerónimo Urmeneta García-Abello | 19 April 1850 | 7 May 1852 | Appointed by | |
Reappointed by | Manuel Montt | ||||
José Guillermo Waddington Urrutia | 7 May 1852 | 7 January 1854 | |||
José María Berganza Lorca | 7 January 1854 | 18 September 1856 | Interim | ||
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José Francisco Gana López | 18 September 1856 | 31 October 1856 | Interim | |
Alejandro Vial Guzmán | 31 October 1856 | 29 September 1857 | |||
Francisco de Borja Solar Gorostiaga | 29 September 1857 | 8 January 1858 | |||
Matías Ovalle Errázuriz | 8 January 1858 | 3 October 1859 | |||
Jovino Novoa Vidal | 3 October 1859 | 1 October 1861 | |||
Manuel Rengifo Vial | 1 October 1861 | 9 July 1862 | José Joaquín Pérez | ||
José Victorino Lastarria Santander | 9 July 1862 | 16 January 1863 | |||
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Domingo Santa María González | 16 January 1863 | 10 May 1864 | ||
Alejandro Reyes Cotapos | 10 May 1864 | 7 January 1869 | |||
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Melchor de Concha y Toro | 7 January 1869 | 2 August 1870 | ||
José Antonio Gandarillas Luco | 2 August 1870 | 18 September 1871 | |||
Camilo Cobo Gutiérrez | 18 September 1871 | 12 April 1872 | Federico Errázuriz Zañartu | ||
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Ramón Barros Luco | 12 April 1872 | 18 September 1876 | ||
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Rafael Sotomayor Baeza | 18 September 1876 | 27 October 1877 | Aníbal Pinto | |
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Augusto Matte Pérez | 27 October 1877 | 5 August 1878 | ||
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Julio Zegers Samaniego | 5 August 1878 | 17 April 1879 | ||
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Augusto Matte Pérez | 17 April 1879 | 16 June 1880 | ||
José Alfonso Cavada | 16 June 1880 | 18 September 1881 | |||
Luis Aldunate Carrera | 18 September 1881 | 25 April 1882 | Domingo Santa María | ||
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Pedro Lucio Cuadra Luque | 25 April 1882 | 18 January 1884 | ||
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Ramón Barros Luco | 18 January 1884 | 5 September 1885 | ||
Pedro Nolasco Gandarillas Luco | 5 September 1885 | 13 October 1885 | |||
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Hermógenes Pérez de Arce Lopetegui | 13 October 1885 | 18 September 1886 | ||
Agustín Edwards Ross | 18 September 1886 | 13 April 1888 | José Manuel Balmaceda | ||
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Enrique Salvador Sanfuentes Andonaegui | 13 April 1888 | 2 November 1888 | ||
Justiniano Sotomayor Guzmán | 2 November 1888 | 11 June 1889 | |||
Juan de Dios Vial Guzmán | 11 June 1889 | 23 October 1889 | |||
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Pedro Montt Montt | 23 October 1889 | 21 January 1890 | ||
Pedro Nolasco Gandarillas Luco | 21 January 1890 | 7 August 1890 | |||
Manuel Salustio Fernández Pradel | 7 August 1890 | 15 October 1890 | |||
Lauro Barros Valdés | 15 October 1890 | 26 December 1890 | |||
Anfión Muñoz Muñoz | 26 December 1890 | 5 January 1891 | |||
Ismael Pérez Montt | 27 December 1890 | 5 January 1891 | Interim | ||
José Miguel Valdés Carrera | 5 January 1891 | 29 March 1891 | |||
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Manuel Arístides Zañartu Zañartu | 29 March 1891 | 29 July 1891 | ||
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Manuel José Yrarrázaval Larraín | 29 July 1891 | 29 August 1891 | ||
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Joaquín Walker Martínez | 7 September 1891 | 26 December 1891 | Revolutionary Junta of Iquique | |
Francisco Valdes Vergara | 26 December 1891 | 14 March 1892 | Jorge Montt | ||
Agustin Edwards Ross | 14 March 1892 | 9 July 1892 | |||
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Enrique Mac Iver | 9 July 1892 | 22 April 1893 | ||
Alejandro Vial Guzmán | 22 April 1893 | 26 April 1894 | |||
Carlos Riesco Errázuriz | 26 April 1894 | 7 December 1894 | |||
Manuel Salustio Fernández | 7 December 1894 | 1 August 1895 | |||
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Enrique Mac Iver | 1 August 1895 | 24 November 1895 | ||
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Hermógenes Pérez de Arce Lopetegui | 24 November 1895 | 18 September 1896 | ||
José Francisco Fabres | 18 September 1896 | 20 November 1896 | Federico Errázuriz Echaurren | ||
Justiniano Sotomayor Guzmán | 20 November 1896 | 26 June 1897 | |||
Juan Enrique Tocornal | 26 June 1897 | 25 August 1897 | |||
Elías Fernández Albano | 25 August 1897 | 23 December 1897 | |||
Alberto González Errázuriz | 23 December 1897 | 14 April 1898 | |||
Darío Zañartu del Río | 14 April 1898 | 28 June 1898 | |||
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Rafael Sotomayor Gaete | 28 June 1898 | 27 June 1899 | ||
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Manuel Salinas González | 27 June 1899 | 14 October 1900 | ||
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Ramón Santelices Cuevas | 14 October 1900 | 3 November 1900 | ||
Nicolás González Errázuriz | 3 November 1900 | 15 March 1901 | |||
Manuel Fernández García | 15 March 1901 | 1 May 1901 | |||
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Juan Luis Sanfuentes Andonaegui | 1 May 1901 | 3 October 1901 | ||
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Luis Barros Borgoño | 3 October 1901 | 18 November 1901 | Germán Riesco | |
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Enrique Villegas Encalada | 18 November 1901 | 6 May 1902 | ||
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Guillermo Barros Jara | 6 May 1902 | 20 November 1902 | ||
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Ricardo Cruzat Hurtado | 20 November 1902 | 7 April 1903 | ||
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Manuel Salinas González | 7 April 1903 | 1 September 1903 | ||
Miguel Cruchaga Tocornal | 1 September 1903 | 10 January 1904 | |||
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Ramón Santelices Cuevas | 10 January 1904 | 12 April 1904 | ||
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Guillermo Barros Jara | 12 April 1904 | 12 May 1904 | ||
Maximiliano Ibáñez | 12 May 1904 | 30 October 1904 | |||
Ernesto Hübner Bermúdez | 30 October 1904 | 18 March 1905 | |||
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Antonio Subercaseaux Pérez | 18 March 1905 | 21 October 1905 | ||
Belfor Fernández | 21 October 1905 | 19 March 1906 | |||
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Ramón Santelices Cuevas | 19 March 1906 | 7 May 1906 | ||
Joaquín Prieto Hurtado | 7 May 1906 | 18 September 1906 | |||
José Raimundo del Río Soto Aguilar | 18 September 1906 | 29 October 1906 | Pedro Montt | ||
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Rafael Sotomayor Gaete | 29 October 1906 | 12 June 1907 | ||
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Ramón Subercaseaux Pérez | 12 June 1907 | 25 October 1907 | ||
Enrique A. Rodríguez | 25 October 1907 | 29 August 1908 | |||
Pedro Nicolás Montenegro Onel | 29 August 1908 | 22 January 1909 | |||
Luis Devoto A. | 22 January 1909 | 15 June 1909 | |||
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Joaquín Figueroa Larraín | 15 June 1909 | 15 September 1909 | ||
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Manuel Salinas González | 15 September 1909 | 25 June 1910 | ||
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Carlos Balmaceda Saavedra | 25 June 1910 | 23 December 1910 | ||
José Raimundo del Río Soto Aguilar | 23 December 1910 | 11 January 1911 | Ramón Barros Luco | ||
Roberto Sánchez García de la Huerta | 11 April 1911 | 15 August 1911 | |||
Pedro Nicolás Montenegro Onel | 15 August 1911 | 20 May 1912 | |||
Samuel Claro Lastarria | 20 May 1912 | 8 August 1912 | |||
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Manuel Rivas Vicuña | 8 August 1912 | 8 April 1913 | ||
Pedro García de la Huerta Izquierdo | 8 August 1913 | 16 June 1913 | |||
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Arturo Alessandri Palma | 16 June 1913 | 17 November 1913 | ||
Ricardo Salas Edwards | 17 November 1913 | 3 September 1914 | |||
Alfredo Barros Errázuriz | 3 September 1914 | 6 September 1914 | |||
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Enrique Oyarzún Mondaca | 6 September 1914 | 15 September 1914 | ||
Alberto Edwards Argandoña | 15 September 1914 | 15 December 1915 | |||
Manuel García de la Huerta | 15 December 1915 | 23 December 1915 | |||
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Ramón Santelices Cuevas | 23 December 1915 | 8 January 1916 | PC | Juan Luis Sanfuentes |
Armando Quezada Acharán | 8 January 1916 | 1 July 1916 | PR | ||
Luis Devoto Arrizaga | 1 July 1916 | 20 November 1916 | PLD | ||
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Arturo Prat Carvajal | 20 November 1916 | 14 July 1917 | PN | |
Armando Quezada Acharán | 14 July 1917 | 12 October 1917 | PR | ||
Ricardo Salas Edwards | 12 October 1917 | 18 January 1918 | PC | ||
Manuel Hederra Concha | 18 January 1918 | 27 April 1918 | PN | ||
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Luis Claro Solar | 27 April 1918 | 6 September 1918 | PL | |
Luis Aníbal Barrios | 6 September 1918 | 25 November 1918 | PR | ||
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Luis Claro Solar | 25 November 1918 | 9 July 1919 | PL | |
Julio Philippi Bihl | 9 July 1919 | 8 November 1919 | |||
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Ramón Subercaseaux Pérez | 8 November 1919 | 26 March 1920 | PNa | |
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Enrique Oyarzún Mondaca | 26 March 1920 | 16 June 1920 | PR | |
Antonio Viera Gallo | 16 June 1920 | 1 July 1920 | PN | ||
Francisco Garcés Gana | 1 July 1920 | 23 December 1920 | PL | ||
Daniel Martner | 23 December 1920 | 12 May 1921 | PR | Arturo Alessandri | |
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Enrique Oyarzún Mondaca | 12 May 1921 | 16 August 1921 | ||
Víctor R. Celis Maturana | 16 August 1921 | 3 November 1921 | |||
Francisco Garcés Gana | 3 November 1921 | 22 March 1922 | PL | ||
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Galvarino Gallardo Nieto | 22 March 1922 | 1 April 1922 | PR | |
Samuel Claro Lastarria | 1 April 1922 | 29 August 1922 | PL | ||
Guillermo Edwards Matte | 29 August 1922 | 21 December 1922 | |||
Ricardo Valdés Bustamante | 21 December 1922 | 12 January 1923 | |||
Aníbal Rodríguez Herrera | 12 January 1923 | 16 March 1923 | PN | ||
Víctor R. Celis Maturana | 16 March 1923 | 14 June 1923 | PR | ||
Agustín Correa Bravo | 14 June 1923 | 2 July 1923 | PLD | ||
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Ramón Subercaseaux Pérez | 2 July 1923 | 3 January 1924 | PN | |
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Enrique Zañartu Prieto | 3 January 1924 | 1 February 1924 | PLD | |
Samuel Claro Lastarria | 1 February 1924 | 14 March 1924 | PL | ||
Belfor Fernández Rodríguez | 14 March 1924 | 20 July 1924 | PLD | ||
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Enrique Zañartu Prieto | 20 July 1924 | 5 September 1924 | PLD |
- PAL - Partido Agrario Laborista
- PC - Partido Conservador
- PCCh - Partido Comunista de Chile
- PCSC - Partido Conservador Social Cristiano
- PCU - Partido Conservador Unido
- PDC - Partido Democrata Cristiano
- Ind - Independiente
- PL - Partido Liberal
- PLD - Partido Liberal Democrático
- MAPU - Movimiento de Acción Popular Unitaria
- PN - Partido Nacional
- PNa - Partido Unión Nacionalista
- PR - Partido Radical
- PRDe - Partido Radical Democrático
- PS - Partido Socialista