Ecuador's National Assembly approved a law to enhance spending efficiency for decentralized governments, prioritizing investment in essential public services.
The Ecuadorian National Assembly has passed an important reform to the Organic Code of Territorial Organization, Autonomy, and Decentralization (Cootad) with 77 votes in favor. This law aims to ensure that at least 70% of the budgets of decentralized autonomous governments (GAD) are allocated to non-permanent spending focused on investment and maintenance for critical infrastructure. The targeted areas include potable water and sanitation, urban roadways, basic infrastructure, and essential services.
In the Tungurahua province, local leaders have responded positively to this legislative change. Provincial prefect Manuel Caizabanda and Mayor of Mocha, Danilo Ortiz, expressed their support for the new regulations, highlighting their potential benefits in improving the quality and accessibility of public services in the region. The approval signifies a commitment towards better fiscal discipline among local governments and aims to direct funds towards necessary projects that will enhance living standards for residents.
By emphasizing responsible budget allocation, this reform could transform how decentralized governments prioritize projects, thereby enabling more efficient infrastructure development. The implications of this law not only affect government spending but may also create ripple effects across the economy, encouraging investment in local initiatives that respond to community needs, thus fostering sustainable urban and rural development in the region.
