President Gabriel Kast’s administration has solidified key economic and administrative policies this week, marking a significant shift in governance strategy for March 2026. The Ministry of Finance established salary caps for ministerial advisors while the Senate prepares to modify fuel subsidy mechanisms to address market volatility. These moves signal a shift toward fiscal consolidation amidst international market volatility and domestic reconstruction needs.
According to a document from the Ministry of General Secretariat of Government, salaries for advisors can reach 10 million Chilean pesos per month. The measure includes strict professional requirements and prior oversight for contract adjustments to ensure transparency and accountability. Officials state the goal is to ensure technical expertise without excessive cost to the public treasury.
Meanwhile, the Senate confirmed the entry of a project modifying the MEPCO fuel subsidy program to reflect current economic realities and international prices. The initiative will be reviewed on Wednesday the 25th following sharp international fuel price increases that threaten household budgets. President Kast defended the termination of the previous illusion, citing consequences for all Chileans if subsidies remain unchanged.
Opposition figures have reacted strongly to the potential social impact of these economic changes and the associated CAE collection fees. Senator Carolina Flores warned that citizens will have more free time due to protests following the announcement of CAE collection. She noted that the government expects significant mobilization against the new measures in the coming days.
Political realignments continue within the governing coalition as Evópoli elected Luciano Cruz-Coke as its new president for the term. The decision follows the appointment of Andrés Santa Cruz as ambassador to the OECD, creating a vacancy in the party leadership. The new leadership emphasizes security, economy, and sector coordination to align with government priorities.
Legal challenges persist regarding high-profile government officials and their conduct during public service in recent months. The UDI parliamentary group plans to bring a case against former Health Minister Ximena Aguilera to the Prosecutor General. This follows a Comptroller General report regarding alleged influence peddling during a surgery for her mother.
Environmental policy has also drawn scrutiny from legal experts and civil society organizations across the country regarding regulatory changes. Jorge Aranda, a lawyer at the Universidad de Santiago, called the withdrawal of environmental decrees unusual and concerning for public health. He urged attention to key norms regarding air quality standards and public health protection.
Security proposals from former presidential candidate José Antonio Kast’s ally, Parisi, suggest using ballistic drones for law enforcement. The plan involves low-cost units valued at up to 50,000 dollars for the Army or Air Force to deploy in northern regions. The objective is to combat vehicle theft and restore order in areas with high crime rates.
International relations face new tests regarding human rights declarations and diplomatic standing at the Organization of American States. The Foundation Iguales accused the government of regression after Chile did not sign an OEA declaration on LGBTI+ rights. This marks the first such criticism in 15 years according to the organization regarding this specific issue.
Analysts suggest these combined measures define the Kast administration’s approach to governance and economic management for the long term. The focus remains on reconstruction funding and strict economic management to stabilize the national currency and public services. Future developments will likely depend on how the Senate handles the fuel subsidy legislation and public reaction.
