Economic development initiatives and social services in Quito may be jeopardized by the reform of the Cootad law currently under consideration in the Assembly.
In Quito, potential reforms to the Código Orgánico de Organización Territorial, Autonomía y Descentralización (Cootad) could endanger key programs aimed at economic development, job creation, and social services for vulnerable populations. The proposal suggests that at least 70% of the budget for Decentralized Autonomous Governments (GAD) must be allocated for investment and maintenance, which would also preserve the resources they are constitutionally entitled to. The proposal is categorized as urgent economic legislation and is progressing through the assembly stages.
Furthermore, this initiative introduces transparency measures, requiring local governments to publish quarterly reports on spending and its itemization, along with steps taken to adhere to fiscal rules. The Ministry of Finance is also mandated to prepare quarterly reports to monitor compliance, which is intended to bolster oversight of public finances. The implications of these changes could lead to significant restructuring of local government budgeting practices in Quito.
As the assembly debates these proposed reforms, there are significant concerns regarding the potential impact on society's most vulnerable groups. Programs focusing on economic development and social assistance may face cuts or restructuring, affecting job creation and community support systems. Stakeholders fear that the new budget mandates could create barriers to implementing essential services that support employment and local growth.
