Posted On 10 Aug 2017
The amount allocated to subsidies in the Pro Forma Budget 2017 is 3.4% lower than that of the previous year. The text arrived at the Legislature on Monday, August 7. The main adjustments to subsidies are for fuels and social security.
58% of the resources the state will allocate this year will for subsidies is to fuels. The state grant will be lower for all derivatives, except for diesel. The explanation is in an increase of the national production of derivatives, due to the repowering of the Esmeraldas Refinery. Meanwhile, the adjustment to the social security segment is tied to a real cut.
The Social Security, for example, will receive USD 122.38 million this year. The figure is even lower than that expected by the agency for this year. The IESS was expected to receive fiscal transfers of USD 270 million this year to cover the payment of housewives’ pensions, rural social insurance and work-related risks. For economic analyst and former director of the IESS Hugo Villacres, a preliminary reading of the subsidy figures, in general, implies that the adjustment goes hand in hand with the fiscal austerity process. (I)