This Public Expenditure Review wasprepared by the World Bank upon request from the MinistryofFinance of Chile. It identifies measures to improve theefficiency of public spending in a relatively narrow set ofprograms and functions in health, education and innovationand entrepreneurship. In health, the report recommendsspecific measures to improve the procurement of drugs andenhancing hospital efficiency. In education, efficiencygains can be achieved within government programs for schoolfeeding, laptop distribution and text books. Interms ofinnovation and entrepreneurship programs, there is scope forfurther rationalization and consolidation of programs andprocesses, especially at the design stage. If implemented,these measures could result in cost savings of CLP284billion (US$422 million), equivalent to 0.2 percent of GDPor about three quarters of the fiscal adjustment targetedfor 2016.