Lasso and Moreno offer to maintain and increase the Bonus for Human Development
Posted On 20 Mar 2017
One of the major expenses that must be assumed by the Treasury every year is the subsidies. For the 2016 Budget – which is the same for this year until the new President is inaugurated, in May – USD 3 193 million will be needed for 16 subsidies. The amount represents 3.1% of the Gross Domestic Product (GDP). A major outflow in this category is intended for petroleum derivates. Ecuadorians only pay part of what fuels actually cost and the state covers the difference.
The official price of domestic gas, for example, is USD 1.6, although it actually costs USD 12, according to the prices available on the Petroecuador website. The fall in oil prices in recent years has reduced fuel prices and, consequently, also reduced the expense of the Treasury destined for this purpose. Last year, the Treasury budgeted USD 1 888 million for subsidies to oil products, but it only spent USD 627 million, according to data of the Central Bank.