Financial distress experienced by the central government hit . Nine out of twenty provinces yesterday complained in Quito about the lack of resources.
Governors warned “they can only withstand this crisis for a month.” Guillermo Herrera, Governor of Carchi, on behalf of the Commonwealth of the North explained that the debt is due to the irrigation award, the refund of the Value Added Tax (VAT) and resources established in the Organic Code of Territorial Organization (COOTAD).
The central government owes $ 73 million to the nine provincial governments (see graphic). None of them is led by Alianza PAIS.
What are the consequences? The delay in the transfer of resources impedes the progress of priority works in roads and infrastructure and payments to suppliers. The worst part, Herrera said, is that the government owes employees wages.