The proposed law aims to amend the Organic Code of Territorial Organization, Autonomy, and Decentralization (Cootad) to enhance the sustainability and efficiency of funding for decentralized autonomous governments (GAD) in Ecuador. By reforming financial mechanisms, the government intends to prioritize public investment by local governments. This shift is seen as crucial for addressing local developmental needs and ensuring that community resources are effectively utilized.

Local authorities and experts have been called upon to explain the financial structures and mechanisms currently in place for GADs. Their insights reveal a landscape where many local governments often struggle with financial autonomy, leading to inadequate funding for essential public projects. This proposed reform seeks to clarify these financial flows and boost local budgets to enhance governance and accountability in resource management.

Moreover, the implications of this law could extend to the overall economic growth of communities across Ecuador, as effective public investments often contribute to better infrastructure, health services, and educational opportunities. The government is positioning this legislative effort not just as a financial adjustment but as a strategic approach to empower local governments to achieve sustainable development outcomes for their populations.