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SANTIAGO, Sept 28 (Reuters) - Chile's government will propose a 3.5% annual increase in its 2024 budget as it tries to boost the economy, President Gabriel Boric said on Thursday.

"With this budget, we (will) increase public spending by 3.5% with an emphasis on security, health, education, housing, emergencies, care and culture," the president said in a televised speech on Thursday night.

The country's annual inflation is forecast to end this year near 4%, Boric added.

The announcement comes as the economy is expected to contract this year amid operational issues that have hit its mining production.

The country's central bank noted, however, it expects gross domestic product (GDP) growth of between 1.25% and 2.25% in 2024.

The government will deliver its budget bill to Congress on Friday and lawmakers then have 60 days before deciding whether to give their approval. (Reporting by Fabian Cambero; Writing by Carolina Pulice; Editing by Isabel Woodford)