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News > Ecuador

Ecuador's Local Governments Filed a Claim Against Budget Cuts

  • Subnational authorities and workers protest budget cuts, Quito, Ecuador, Dec. 1, 2020.

    Subnational authorities and workers protest budget cuts, Quito, Ecuador, Dec. 1, 2020. | Photo: Twitter/ @AMEcuador

Published 15 January 2021

President Lenin Moreno has not transferred US$680 million to sub-national governments so far.

Consortium of Provincial Governments of Ecuador (Congope) Chairman Pablo Jurado filed a lawsuit of "unconstitutionality" before the Constitutional Court (CC) against budget cuts promoted by Presidente Lenin Moreno. 


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The claim seeks to obtain a ruling on the government's decision to suspend local budgets which have suffered in some cases a cut of 60 percent.

Congope representatives held that the provincial government's financial autonomy was violated and at risk while condemning the lack of a payment program and control of the Economy Ministry's austerity policy by the Parliament.

"Poverty is being generated in the rural sector. Mr. Moreno, we no longer believe in your words. In our province, which is once again at a red light, the debt climbs to US$7 million," Carchi Prefect Guillermo Herrera said.

Warning that Moreno's administration maintains a debt with local authorities of around US$680 million, Congope reaffirmed that subnational governments would not accept a further decrease in their budgets surpassing 5 percent. 

Noting that the lawsuit was supported by national and subnational workers unions, Congope officials also rejected the Urgent Economic Law aimed at fulfilling policies promoted by the International Monetary Fund (IMF).

"It has been almost 6 months that the national government has not given us the resources that belong to the people...We are rejecting its illegal, spurious economic decrees. It is important that the Parliament oversights," Pichincha Prefect Paola Pabon said.

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