In $ 4,000 million calculates the president Guillermo Lasso the fiscal impact of the salary increase for teachers that appears in the reform to the Organic Law of Intercultural Education.
On March 13, the National Assembly approved with 113 votes adjustments to the regulations that were processed and voted on in the previous legislative period, and that were suspended by the Constitutional Court (CC) until texts that allow their application are ratified or changed. .
In his conversation on March 15, Lasso questioned the Parliament’s decision. He argued that in Ecuador the budget deficit for this 2022 is 2.3% of the gross domestic product (GDP) and if the salary increase for teachers is included, which represents 4%, the deficit would reach 6.3 %. In addition, with the “alleged” repeal of the tax reform promoted by some opposition legislative sectors, revenues of around 1% of GDP would be lost, he added.
In total, the deficit – the president estimated – would reach 7.3%, which for Lasso “is not manageable” and it will be impossible to obtain financing.
In the report that the Ministry of Economy and Finance presented to the Education Commission of the Assembly when the reform process began, and on which Lasso’s accounts are based, it was indicated that the direct budgetary impact due to the changes in the ranks of the teaching profession would reach $2,880 million.
Only in the first year it would be $2,175 million with annual increases to the recategorizations established in the rules of the teaching profession. To this, the ministry points out, it would be necessary to add $705 million corresponding to the acceleration of the constitutional goal of spending on education (which is 6% of GDP) in the education budget and the new scale.
They also cited other impacts on the Social Security system:
“1. Increases in contributions for health insurance by the new scale in $ 23.03 million.
2. Actuarial cost to finance the reduction in contribution times, which would amount to $1,082 million (for 40% of the state contribution)”.
Although these last points would not apply, since the differentiated retirement for the teaching profession at 25 years of contributions and not at 30 as is the general system, was finally not approved by the Assembly despite the fact that the Court requested that the issue also be clarified. .
At the moment the ministry is preparing an updated report, the institution said.
The president of the National Union of Educators (UNE), Isabel Vargas, He expressed that there is “bad faith” in the Government by “exaggerating” the fiscal impact.
The leader indicated that the report of the Education Commission concluded that some $600 million would be required for salary equalization. “Nothing to do with the figure given by the President of the Republic,” she said.
“What we ask is that the figures be made transparent. That is why we maintain that this salary equalization corresponds to a reparation of the rights of the teaching profession. We cannot accept that this number is overstated with the aim of criminalizing this just struggle”, he said.
Vargas explained that the law specifically cites the source of financing for the increases, it is tax collection, which has grown in recent months by $1,000 million. In addition to the extra income from the increase in the price of oil.
The UNE ratified that it will carry out sit-ins outside the country’s governorates this March 17 to demand that the Government respect the Assembly’s decision.
The Executive must send a report to the Constitutional Court with its comments on the subject and it will be this institution that finally makes a decision on the viability of the norm. (I)
Source: Eluniverso
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