The Economic Development Commission of Ecuador's National Assembly approved a report for a second debate on a reform to the Organic Code of Territorial Organization, Autonomy, and Decentralization (Cootad) aimed at ensuring sustainability and efficiency in the spending of decentralized autonomous governments (GADs). This legislative session took place on February 17, 2026, where members debated the importance of this proposal, which is now set to be presented before the full Parliament.

The proposed reforms emphasize the need for fiscal sustainability and rational spending rules to safeguard the budget availability for investments, maintenance, public service provisioning, and the fulfillment of governmental responsibilities. The initiative suggested that GADs should allocate at least 70% of their budget towards the maintenance and replacement of infrastructure and public services, while the remaining 30% should be directed to operational costs.

This legislative move reflects the government's commitment to optimizing fiscal management at the local level, potentially leading to improved public service delivery and infrastructure sustainability. As the proposal advances, it is expected to ignite further discussions on budget management and governance efficiency within Ecuador's decentralized governmental framework.