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News > Ecuador

Ecuador's Subnational Governments Protest Against Budget Cuts

  • A young man holds a sign that reads,

    A young man holds a sign that reads, "No Budget, No Development," Quito, Ecuador, Dec, 16, 2020. | Photo: Twitter/ @EnClavePolitika

Published 16 December 2020

The Executive branch has not made budget transfers to most prefectures and municipalities for three months.

Ecuador's Consortium of Provincial Governments (Congope) Wednesday announced indefinite mobilizations to protest budget cuts approved by President Lenin Moreno's administration.


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Besides demanding that the Economy Ministry pay them the money it owes subnational governments, Congope noted that governors disagree with the reasons given by the Moreno administration to justify the cuts.

The organization also announced that it will not accept fund reductions exceeding 5 percent of the quotas established in the Territorial Planning Law.

Economy Minister Mauricio Pozo pointed out that the cuts are a "direct consequence" of the loss of US$8 billion in tax revenue during 2020.

In November, Pozo reduced the budget of subnational governments by approximately US$772 million. This budget cut affects 221 municipalities, 23 provincial prefectures, and 1,499 parish boards.

The Congope President Pablo Jurado denounced that the Central government has not made budget transfers to most subnational governments for three months.

In the case of the Pichincha Province, which is led by leftist politician Paola Pabon, the Moreno administration has not sent money for six months.

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