Central Government owes $ 225.5 million to sectional governments
More than $ 225 million, with a cut to April, must be paid by the central government to the Decentralized Autonomous Governments (GAD) for the refund of Value Added Tax (VAT), competition for irrigation and drainage, water dredging and actions in the electric companies.
Representatives of the Consortium of Provincial Governments of Ecuador (Congope) held on Wednesday May 9 an informative meeting with the Minister of Economy and Finance, María Elsa Viteri.
In the meeting that took place behind closed doors, without access to the press, Viteri expressed the commitment of the government to comply with the salaries.
The GADs are willing to receive government bonds or Central Bank Securities as a form of payment, said Edwin Miño, executive director of Congope.
“It has been agreed to make a payment agreement to be given by parts,” said Miño and said the consortium proposed that at least 35% of the assets be canceled in cash for the GAD to pay items corresponding to advances of public works that have not been able to start due to lack of resources.
Another proposal is to allow sectional governments to directly manage credits with a development agency such as the IDB and authorize the collection of a vehicle tax.
Miño acknowledged the good intentions of the authorities, however, said he was not optimistic that the regime fully cover the pending accounts this year, due to the economic situation.
For VAT refund, the Government owes $ 40.6 million, for irrigation and drainage competition are $ 56.7 million, dredging $ 11.4 million and for payment of shares of the GAD in electricity companies $ 108, 8 million. Discussions with Finance to define an agreement will be resumed once the bill regarding the economic plan has been presented. (I)