Daniel Noboa’s government managed to pay salaries in the public sector this December 1 and thereby calm the concerns of public servants who started the day without a salary even though they are used to being paid on the last day of the month or even the day before. .

The Minister of Economy and Finance, Juan Carlos Vega Malo, announced that “despite the sensitive fiscal situation, we paid 100% of the salaries of the general state budget, through the temporary management of the liquidity of public sector entities” and thus President Daniel Noboa satisfies the public servants. He reported it on his X account (formerly Twitter).

In an official statement, the Ministry of Economy recalled that the current administration faced a worrying state of public finances, with a balance in the fiscal treasury of only 184 million dollars. He said that despite this, the Government’s commitment to the country is to overcome this kind of inconvenience with will and urgent decisions and thus prevent public servants from having to bear the consequences of past fiscal failures.

The payment of salaries was made thanks to a “temporary effort to manage liquidity between public sector entities, without affecting their operations, with resources that will be compensated in the short term with revenues and financing alternatives that are being analyzed”.

Meanwhile, Minister Vega Malo said: “Our commitment will always be to healthy and sustainable public finances.”

The payment of this month’s public salary was questionable, because it was known that the fiscal fund had very few funds. This government received the fiscal treasury in the amount of 179.7 million dollars. And by November 24, it amounted to slightly more than 300 million dollars. However, public sector wages are approximately $700 million each month.

After consulting with Albert Acosta Burne, the publication’s editor weekly analysis, What does it mean to make temporary liquidity management among public sector entities, he explained that it is about taking funds from public entities for the payment of salaries.

He even mentioned that there were comments that the National Finance Corporation (CFN) gave the Government 139 million dollars today. For Acosta, it shows the difficulties and fiscal crisis we are facing. This is how they paid the salaries for November, but it is not known what will happen in December.

The analyst explains that, although the Government announces that this type of temporary loans will be returned, it is not in a hurry because it is public banking. However, he clarifies that these funds should be delivered for loans to citizens, but now they go to pay salaries. “From a macroeconomic perspective, it’s inconvenient,” he emphasizes.