Feb 27 • 22:30 UTC 🇪🇨 Ecuador El Universo (ES)

Yuri Colorado, president of AME: 'We will seek a mechanism for municipalities that do not comply with the 70/30 rule not to have budget reductions'

Yuri Colorado, the president of the Ecuadorian Municipalities Association, discusses implementing support for municipalities to meet legal requirements concerning budget management.

Yuri Colorado, the president of the Ecuadorian Municipalities Association (AME) and mayor of Muisne, has emphasized the role of AME in guiding municipalities across Ecuador in adhering to the provisions of the Reformed Organic Code of Territorial Organization, Autonomy, and Decentralization (Cootad). This law is aimed at ensuring sustainability and efficacy in the expenditure of decentralized autonomous governments (GADs). Colorado's leadership is crucial in navigating the financial regulations that significantly impact local governance.

Under Colorado's management, AME is committed to creating mechanisms that will prevent municipalities falling short of the 70/30 expenditure rule from facing budget cuts. This stance reflects a proactive approach to support local governments in meeting their financial obligations while avoiding punitive measures that could adversely affect their operations. The 70/30 rule pertains to the allocation of municipal budgets, which dictates that a proportion of funds be spent on development projects.

The implications of Colorado's initiatives are significant, as they propose a safety net for struggling municipalities, encouraging them to improve their compliance without the fear of immediate financial penalties. This could foster better financial planning and resource allocation among the various cantons in Ecuador, ultimately benefiting local communities are expected to lead to more effective local governance and improved community services across the board.

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