Authorities in Pichincha, Ecuador, have voiced strong opposition to the recently passed Efficiency of Spending Law that mandates financial allocations for local governments.
Following the National Assembly's approval of the Sustainability and Efficiency of Expenditure Law for Decentralized Autonomous Governments (GAD) with 77 votes in favor, several authorities, including Pichincha prefect Paola Pabón and Quito Mayor Pabel Muñoz, have reacted negatively to the decision. The law amends the Organic Code of Territorial Organization, Autonomy, and Decentralization (Cootad) requiring Prefectures and Municipalities to allocate 70% of their revenues to investments and 30% to current expenditures. This significant shift aims to optimize resource management in local governments.
In a video posted on social media, Paola Pabón criticized the National Assembly for turning its back on subnational governments and the most vulnerable communities, insisting that the new law undermines their ability to maintain essential social programs. She emphasized the resilience of local authorities, vowing to continue providing vital services despite the legislative changes. The implications of this law extend beyond finances; they affect the operational capacity of local governance and the welfare of citizens dependent on various social services.
These developments raise concerns about the impact on social care initiatives as local governments grapple with the new fiscal constraints. Authorities warn that this law may jeopardize the functionality of programs designed to support the community's most disadvantaged members. As the debate continues, the Pichincha administration seeks to rally support against these financial measures, advocating for the needs of local populations and defending their autonomy in resource management.
