Subsidies come with big discounts

Image: Expreso

The Government will see the positive points of the fall in oil prices. One of its strongest, for exampleexpenditures will have a major downturn: subsidies.

In the 2016 proforma budget discussed in the Assembly, the assignation for subsidies reaches $ 3193.6 million. This year $ 5.966 million were assigned. A fall of 2.773 million dollars.

The sharp cut is in fuels. From $ 3,494 million assigned in 2015, $ 1.881 million will be assigned this year. That is, $ 1.613 million less. According to the coordinator Minister of Economic Policy, Patricio Rivera, the fall responds to low oil prices and, therefore, the low price of its derivate products.

ccording to the minister, although an optimization of subsidies is being carried out, reduction is mostly unresponsive to that policy. “There is a very sharp drop in oil prices and that impacts on the importation of cheaper derivatives.”

Source: http://expreso.ec/expreso/plantillas/nota.aspx?idart=8655094&idcat=38269&tipo=2