Ecuador's prefects and mayors are given until May to adjust their budgets to comply with a new law requiring a minimum allocation of 70% for public works.
Ecuadorian prefects and mayors are tasked with adjusting their budgets within the months of March, April, and May to comply with a new fiscal regulation established under the reform of the Organic Code of Territorial Organization, Autonomy, and Decentralization (Cootad). This regulation mandates that as of June 1, 2024, these local governments must allocate 70% of their resources to public works and limit operational expenses to 30%. Failure to meet these requirements will result in corrective measures from the Ministry of Economy and Finance.
The objective of this law is to enhance the sustainability and efficiency of spending by Decentralized Autonomous Governments (GAD). It emphasizes the need for municipalities and prefectures to refocus their investments on critical infrastructure projects, such as potable water supply and wastewater treatment. This shift in budget allocation aims to promote better public services and address pressing local needs, reflecting a strategic approach towards investment in community development.
Enrique Herrería, the legal secretary of Ecuador's Presidency, highlighted the importance of this budgetary reallocation and urged local authorities to prioritize investments that directly benefit citizens. The government is keen to ensure that local budgets are effectively utilized to improve living conditions and enhance the provision of essential services, reinforcing the overall governance framework within the country.
