José Antonio Kast: Chile's New President Takes Office

On March 11, 2026, conservative politician José Antonio Kast assumed office as Chile's newly elected president after a victory in December 2025, obtaining 58.16% of the vote (with over seven million ballots) defeating Jeannette Jara, former President Boric's Minister of Labor. Kast's election aligns with recent electoral outcomes that have favored right-leaning candidates in Latin America including in Costa Rica, Ecuador, Bolivia, as well as in Argentina's mid-term elections, which saw increased support for Milei's party.

Chile's economy has gradually recovered from the social unrest in 2019 and the effects of the COVID-19 pandemic, with inflation falling from 25% at its peak in mid-2022 to around 3% by the end of 2025. Despite this improvement, the past four years have seen slow GDP growth, averaging 1.9% (the second lowest since the return to democracy), with unemployment maintained at roughly 8%. A further challenge for the incoming Kast administration is the structural fiscal deficit, which reached 2.2% exceeding the previous government's projections, and contributing to public debt rising to its highest level at 41% of the GDP.

This economic context has also been shaped by the two failed attempts to pass a new constitution under the previous administration, which created legal uncertainty and initially reduced foreign investment. Investment has experienced a notable increase, more than doubling since 2022, with the largest inflows concentrated in the energy sector, followed by mining. Looking ahead, foreign investment will likely be a central pillar of the new administration's economic strategy; however, the higher-than-expected public debt and structural deficit may complicate the implementation of its ambitious fiscal policy goals.

We discuss below some of the key proposals in Kast's government program "La Fuerza del Cambio" (the "Plan"), which places safety, immigration regularization, and liberal economic policies at the center of his agenda.

Kast's Emergency Program

Kast focused his campaign program on the concept of a "State crisis," arguing that the Chilean State has failed to guarantee security and has contributed to its economic stagnation. In response, he has stated that he will lead an "emergency government," focused on three areas: (i) security; (ii) economy; and (iii) social issues.

These three pillars structure his agenda and shape the proposal he intends to advance, whereas matters that fall outside of this framework are not expected to be prioritized. They also serve as the basis for his first 90 days in office, which he has described as a period focused squarely on "the problems that Chileans face today."

Within this structure, the economic emergency pillar will be led by the Minister of Finance, who will coordinate actions across the ministries of economy, mining, labor, energy and agriculture.

Key Proposals and Future Challenges

a. Reduction in Bureaucracy for Foreign Investment and Projects

The Plan places a strong emphasis on reducing bureaucratic requirements and simplifying authorization processes for new infrastructure and environmental projects. The overarching objective is to modernize existing procedures and remove unnecessary regulatory steps to accelerate project development and encourage investment.

In addition to these regulatory changes, the government plans to intervene directly to advance projects that have been stalled or are pending approval. These projects, valued at more than US$ 12 billion, are expected to be addressed early in the administration's term. As part of this effort, the government aims to tackle what it refers to as "permisiología" (a reference to the often excessive system of permits, authorizations, and bureaucratic requirements that may be needed to carry out investment or development projects) by reviewing permit and authorization requirements to shorten filing and approval timelines while maintaining environmental, social and economic considerations.

Overall, the proposals reflect a pro-growth agenda focused on reactivating the economy by facilitating investment in the construction, mining, energy, and infrastructure sectors—easing bottlenecks and supporting employment.

b. Focus on new infrastructure projects

A central element of this agenda is the "New Public Works Concessions Plan" (Nuevo Plan de Concesiones Públicas), which will establish the list of initiatives and priorities in infrastructure projects and focus on the construction of desalination and water-reuse projects, correctional facilities, and health centers.

The government also intends to review current public procurement guidelines, to determine whether amendments are needed to further facilitate project development. This approach also extends to urban-planning processes, where the administration proposes liberalizing land-use restrictions and deregulating planning requirements that currently involve multiple permits and authorizations. In the environmental sphere, the government aims to increase efficiency by revising or eliminating rules or guidelines considered to create legal uncertainty or delay in project development.

c. Tax Reductions and Budget Cuts

One of Kast's central fiscal proposals is a significant reduction in government spending, with budget cuts amounting to US$ 6 billion over the next two years (for reference, Chile's 2024 budget was around US$ 88 billion). Although it remains unclear which specific areas will be affected or targeted, Kast has repeatedly stated that social benefits will not be reduced.

Kast has also announced his plan to lower the corporate income tax rate from 27% to 23%, and even as low as 20%, over a four-year period. According to the administration, a draft bill is expected to be presented by April 2026, with the purpose of enacting the reform within Kast's first year in office. Additional tax changes include reductions to property taxes, primarily focusing on eliminating property tax on individuals' first homes and the removal of capital gains tax on the sale of shares with low stock-market liquidity.

Critics argue that these tax cuts may compromise the government's ability to meet its own fiscal-consolidation targets. In response, the Minister of Finance indicated that efforts to curb abuse and overspending, improve public-spending efficiency, and eliminate ineffective programs, combined with their expected economic growth, will allow the government to reach its fiscal goals.

d. Security and Immigration

Although Chile continues to be one of Latin America's safest and most stable countries, violent crime has increased in recent years and much of Kast's campaign centered on what he described as Chile's "security crisis" and the "uncontested advance of organized crime and drug trafficking." Accordingly, he proposes strengthening the effectiveness and severity of criminal sentencing, particularly for organized-crime offenses. Kast's security agenda also incorporates measures intended to deter irregular immigration.

Feasibility of proposals

Although Kast secured an important victory, his party entered the election without forming a coalition and only received support from traditional conservative parties during the run-off. As a result, his party alone—and even combined with the broader right—will not have sufficient congressional support to fully advance his legislative agenda.

Moving forward, Kast will need to build broader agreements, including with centrist and center left parties, to achieve the necessary majorities—particularly for his more ambitious proposals. The surprising rise of a populist party, Partido de la Gente, that does not consistently align with either bloc adds an additional element of unpredictability, further complicating the prospects for ensuring Kast's initiatives.

Since the election, Kast has sought dialogue with center-right parties and has distanced himself from the libertarian party that supported his candidacy in the run-off. His cabinet appointments reflect this approach: most ministers do not have a formal party affiliation, while his agriculture and energy ministers have been historically linked to the center left.

Main takeaways

Kast's presidency marks a stark contrast from the policies of former President Gabriel Boric and reflects Chile's shifting voting patterns, which have alternated between left-leaning and right-leaning governments since 2006. Kast's ability to implement his agenda will ultimately depend on his success in navigating a fragmented Congress, managing coalition-building, and balancing fiscal constraints with ambitious policy commitments.