The 2024 general government budget, set at $33,296.8 million, represents an additional cost of $602 million compared to the budget codified on December 31, 2023, and a $1,794 million burden. , compared to the initial budget of January 2023.

At a time of serious financial and liquidity crisis, in which the Government is drowning in a deficit of 5,500 million dollars, unpaid obligations of 4,000 million dollars and debt repayment needs of another 5,000 million dollars, it is striking that the expanded budget exceeds both parameters. The initial budget for 2023 was $31,502 million, and the codified budget was $32,694 million.

According to the guidelines issued by the Ministry of Economy and Finance on December 23, the budget for this year, which is atypical because it was an early election, because of the cross dead, while the General State Budget and the Four-Year Program Budget for the budget year immediately after the start of management; “If necessary, the codified budget from December 31 of the last approved budget will be used.”

The codified budget of December 31 is also not aligned with the statements of the President Daniel Noboa himself or the Minister of Finance Juan Carlos Vega Malo, in the sense that he will seek to reduce about 1000 million dollars of public spending.

Jaime Carrera, executive secretary of the Observatory for Fiscal Policy (OPF), assured that since the new President of the Republic took office on November 23, 2023, the new executive had only had to execute the budget for one month and days. in 2023

With the provisions of Article 295 of the Constitution of the Republic of Ecuador, it is obvious that until February, when the government presents the budget for 2024, the validity of the initial budget for 2023 will be extended. Therefore, the Ministry of Economy and Finance had to publish on its pages the initial budget for 2024 publish the initial budget for 2023 approved by the National Assembly. However, the Ministry changed the rule stating that the coding must be applied to December (which is higher than that of January). For that matter, Carrera says he doesn’t even abide by his own stipulation.

In the revenue part, it is striking that tax revenue is set at $16,700 in 2024, when the coded amount was $16,020 million. Among the taxes that would be considered an increase is the ISD, according to the figures.

When comparing the codified budgets for 2023 and the initial budget for 2024, it is seen that the debt revenue in the first case was $5,601.2 million; while in 2024, $7,339.3 million is expected, a figure that is very unlikely to be achieved.

Carrera says that under the 2024 budget, $6.677 million will come from external payments or credits, $2.944 million more than in the initial budget for 2023. In addition, zero dollars is earmarked in 2024 to pay for the amortization of the external debt, Carrera says.

For an expert, the new budget represents irresponsibility in managing budget accounts. Treated: “in the purest corner store style.”

Ecuador has been incubating a severe fiscal crisis, the magnitude of which most political, economic and social sectors do not fully understand. In order to avoid painful consequences in all segments of society, moreover, in the army of the poor and unemployed, deep structural reforms are inevitable, which must be based on absolute technical rigor in the management of public finances, and on unlimited respect for the Law, he said.

In the meantime, the Government continues to accumulate outstanding liabilities. A large group of representatives of 120 non-paying state-owned supplier companies are expected to hold rallies on the Financial Platform today. Marco Leguízamo, president of the Association of Unpaid Government Suppliers, said that in recent weeks they have been patiently waiting for the Government to put their accounts in order, but so far they have not had an answer. In this sense, they will go out to protest for wages this Wednesday.

On February 23, the government must present the final budget for 2024, according to Article 295 of the Constitution. This means that the executive must present the proforma budget 90 days after it is in possession.