In a recent interview on Radio Centro, Ecuadorian President Daniel Noboa addressed the newly approved law regarding the spending balance in Decentralized Autonomous Governments (GAD). He emphasized that the law aims to prioritize public resources for infrastructure and services that benefit citizens rather than concentrating on payroll expenses. This initiative comes as part of an urgent project, advocating for a spending distribution model that allocates 70% towards investment and 30% towards current expenses.

Noboa responded to criticism from local governments that are planning protests against the law, insisting that critics should read the legislation before expressing dissent. He highlighted that the existing legal framework, such as COOTAD, already outlines regulations for spending allocation. The 70/30 split he promotes is not a novel approach; instead, it is a practice that has been utilized by past mayors like Jaime Nebot of Guayaquil and Paco Moncayo, who successfully implemented similar spending strategies.

The implications of this law could significantly alter the financial landscape for local governments in Ecuador, as it seeks to ensure that funding is effectively directed towards public investment. Noboa's strong advocacy suggests a push for more accountability in budget management at the local level, but also raises concerns among mayors who fear reduced operational funding for their municipalities. This debate over fiscal policy reflects broader tensions in governance and resource allocation in Ecuador's decentralized political system.