The Minister of Economy and Finance indicated yesterday that 3% will be delivered to universities, although the net is negative between 2021 and 2022.
Universities report a decrease in budget by 2022 equivalent to $ 77 million. This is stated in the 2022 budget proforma delivered to the National Assembly last Saturday by the Executive and that today it will be dealt with in a first session by the Economic Regime Commission. In the line for university expenses it is indicated that in 2022 $ 1,164.6 million have been allocated; However, it is a lower figure than the budgeted in the coding as of August 2021 ($ 1,247 million).
The decrease is not due to a cut by the Ministry of Economy and Finance, but to a decrease in other items that are also part of the sources of income of these higher education entities.
The Minister of Economy and Finance, Simón Cueva, explained yesterday about the budget of universities that rather There has been an increase of 3% between what was allocated in 2022 compared to 2021. According to the Ministry, in 2021 $ 1,096 million were allocated, and this year it would be $ 1,129.8 million. He remembered, Furthermore, there are four sources of financing for universities: Fopedeupo ($ 871 million), which is a fund that feeds on income tax and VAT; a gratuity component ($ 183 million); another for operation ($ 26.6 million); and, finally, one of compensation ($ 47.4 million).
However, there are other items that do not depend directly on Finance and that are self-management, advances, VAT refund and loans from the BEDE, which would have a reduction, which in the end leaves that lower result for 2022. For example, VAT should no longer be delivered to universities, because with the reform of the law, universities directly withhold this tax on their purchases.
In any case, according to the budget proforma delivered, there are at least 21 of the 33 universities that will have a budget cut this year. This cut is due to a redistribution defined by the Higher Education Council according to Resolution RPC-SO-28-No.676-2021 of October 27, 2021. The redistribution is done according to certain calculation parameters, mainly taking into account budget execution.
Thus, for example, University of the Arts registers a drop from $ 18.3 million to $ 14 million (-23.14%); the Ikiam University it goes from $ 14.7 million to $ 7.5 million (-48.71%); the Guayaquil University it goes from $ 150.6 million to $ 127.7 million, that is, a reduction of 15.20%; the central University registers a decrease of 4.49%, going from $ 144.5 million to $ 138 million.
On the other hand, there are others that register an increase with respect to 2021, or, having been recently created, register a new budget. For example, the Intercultural University of Indigenous Nationalities and Peoples Amawtay Wasi It is of recent creation (year 2019), therefore, it is in the process of institutionalization. It has an allocated budget of $ 2 million for fiscal year 2022. This item represents an increase of 182% compared to 2021.
Other universities that will receive more resources are the Manabí State University, with a 22.24% increase, as it goes from $ 16.6 million to $ 20.3 million; also the Higher Polytechnic Agrarian School of Manabí has an increase of 23.2%, going from $ 10.7 million to $ 13.2 million.
Meanwhile, Minister Cave He stressed that the budget proforma for 2022 goes in the direction of continuing to lower the fiscal deficit with permanent resources, in order to give sustainability to public finances. Thus, he explained that in 2020 the deficit was about $ 7,000 million, while by 2021 it could close at about $ 4,000 million. Meanwhile, by 2022 the proforma forecasts a deficit of $ 3.5 billion. However, the minister stressed that once the Economic Development Law or tax reform is approved, and if it is possible to do so in the terms provided by the Government, said deficit would decrease and could end at 2.5% in 2022.
The minister commented that the tax reform would also help GAD and university allocations grow, since according to the law, these sectors receive resources according to the volume of permanent income.
The treatment of the budgetary proforma and the four-year programming 2022-2025 will be developed from this Saturday at 10:00, indicated the president of the Commission, Mireya Pazmiño (PK).
The assemblywoman said that this Saturday the table has already been summoned to advocate knowledge of the proforma. This, even though it was not delivered Until Friday afternoon the report of the Legislative Technical Unit (UTL). In any case, he said that it could not continue to wait, since the time for the analysis of the proforma is short. He assured that today a draft of the appearance schedule for the socialization stage of the proforma will be known, which can be approved or receive contributions from other legislators.
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