Initial government estimates suggested that USD 5 966.8 million would be allocated to 16 subsidies this year, but through various measures they managed to reduce this amount by more than USD 1 000 million.
Last Thursday, President Rafael Correa signed a decree to remove the subsidy on diesel, gasoline and fuel oil for commercial and industrial use and for other sectors like shipping and transport of international heavy cargo; and he further restricted the fuel subsidy for airlines.
The removal of these grants means savings for the Treasury of USD 337 million annually, according to the government.
Last April, the Law on Labor Justice and Recognition of Unpaid Labor at Home, allowed the executive branch to cut this year USD 700 million of USD 1100 million in subsidies to be delivered to the Ecuadorian Institute of Social Security (IESS for its Spanish acronym).
Source: http://www.elcomercio.com/actualidad/16-subsidios-vigentes-doble-2006.html
