The proforma budget for 2020 will have spending cuts in some entities and increases in resources in others.
Once the 2020 Proforma Budget did not reach a consensus in the National Assembly, it will enter into force through the Ministry of Law and anticipate the reduction of expenses in 97 of the 155 State entities. But in 57 institutions, budgets will increase.
The entities with the most important cuts are “Planifica” Ecuador (formerly Senplades), the National Electoral Council, the Secretariat of the Bilingual Intercultural Education System, the National University of Education and the National Risk Management Service. In “Planifica” Ecuador, one of the most cut expenses is salaries, which goes from USD 13.8 million in 2019 to USD 4.8 million by 2020.
Economic analyst Diego Olmedo said that the measures proposed by the Government on entities’ budgets are not enough because the budget has a deficit of almost USD 3.5 billion.
He noted that the entities with the most cuts have little influence in the state budget and mentioned that they represent only 2.2% of the total expenses allocated to the 155 entities. Meanwhile, the 10 entities with the highest budget increase represent 2.9%. According to the analyst, this is contradictory.
The institutions that register the strongest budget increases are the Public Works Contracting Service (Secob), the Technical Secretariat of the Amazon Territorial Circumscription, the Port Authority of Manta, the Presidency of the Republic and the Ministry of Finance.
In Secob, the budget allocation goes from USD 8 million approved for this year to USD 58.8 million for the next one.
In the case of the Presidency, the amount grows by wages. In 2019, USD 10.8 million was assigned to salaries and in 2020 USD 16 million will be allocated. The expense for consumer goods and services, which corresponds to expenses such as leasing and payment of basic services, also grows and goes from USD 4.04 million to USD 21 million.
Source: Pichincha Comunicaciones.