There were 94 votes in favor and 37 abstentions. It was decided to review the allocations for health, education and the financing of the social rehabilitation system.
With questions about the allocations for the health and education sectors, this November 17 the debate on the Proforma of the General State Budget (PGE) 2022, amounting to $ 33,899.73 million, and the Quadrennial Program 2022-2025.
After six hours of discussion, the vote was taken on report that recommended observing the proforma raised by the Government, which was approved with 94 votes in favor and 37 abstentions.
Mireya Pazmiño, president of the Economic Regime Commission, presented the details of the report containing observations and requirements for the Executive. The parliamentarian maintained that, in accordance with article 107 of the Organic Code of Planning and Public Finance, until the PGE of the year in which the new president of the Republic takes office is approved, the codified budget as of December 31 of the previous year will govern.
However, Pazmiño said, the 2022 proforma takes as a reference, to establish the allocations, the amounts of the codified budget until August 31, 2021.
Based on this, the report observes that the health allowances ($ 3,409.5 million) and education ($ 3,419 million), which constitutionally each year must increase 0.5%, do not represent a real increase.
Furthermore, it is appreciated that since 2018 health resources have decreased by 11.5%, while in education there was a fall of 15% in four years. Added to that is the reduction in the budget for universities, said the assemblywoman. The proforma provides $ 823 million for universities and polytechnics.
On the other hand, Pazmiño highlighted that the Commission did not have enough information to verify the priorities in the allocation of resources and priorities of public policy to comply with the objectives and goals of the National Development Plan. No details were available on the public investment schedule either.
The PGE foresees total income for $ 24,114.62 million and expenses for $ 27,898.12 million, leaving a balance of fiscal deficit of $ 3,783.50 million, equivalent to 3.45% of gross domestic product (GDP). The financing needs for next year are estimated at $ 9,768.85 million.
As macroeconomic assumptions the average price of oil was set at $ 59.20 and a production of 179.88 million barrels. In addition, it is anticipated that economy grow 2.8% in 2022, which represents a GDP of $ 109,618.57 million. For the year 2025, a growth scenario of 5% is proposed. Average inflation for 2022 is estimated at 1.28%.
From the ruling party, Assemblywoman Nathalie Arias (CREO) assured that allowances for universities, through the Permanent Fund for University and Polytechnic Development (Fopedeupo), they have increased, going from $ 1,105 million to $ 1,130 million. He mentioned that the value that has been reduced is that corresponding to self-management and for the return of value added tax (VAT).
The legislator for Pachakutik Salvador Quishpe pointed out that the decentralized autonomous governments have made constant requests for resources from the central government to meet their local needs; however, they receive the answer that “there is no money.”
According to Quishpe, resources could be obtained by collecting debts from 500 companies that they owe to the State for taxes, an amount that would reach $ 1,600 million.
The safety was also a topic of discussion full on. Ramiro Narváez, president of the Comprehensive Security Commission -which issued the report on the prison crisis-, suggested that the Ministry of Finance create a spending classifier for security and border development. In this way, the investments made by the competent institutions in the matter can be determined.
The debate ended after the intervention of 25 assembly members. In the final motion that was put to the vote, and that was finally approved by the majority of legislators, observations were incorporated regarding financing of the social rehabilitation system, as well as pay the debt that the State maintains with retirees of the public sector, among other aspects.
In this regard, it was included as an observation to review the allocations for the financing of the social rehabilitation system, in order to achieve solutions for the prison crisis.
Regarding health and education, it was established to review the assignments, in order to guarantee the respective annual increases established in the Constitution of the Republic, and mainly to cover the permanent increase in the demand for its services by citizens.
As requirements to the Executive, the approved report states that the necessary information must be delivered to clarify the different internal financing mechanisms and the debt limit for fiscal year 2022. (I)
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