State Spending rose in the first half of 2013

Despite the reduction of income sources, public spending in the first half of this year was $ 14,588 million compared with the same period in 2012, in which the expenditure was $ 12,543 million.

According to the Fiscal Policy Observatory, the $ 2,045 million increase is due to the increased Human Development Bond (BDH) and variations in current spending.

The Ministry of Finance, notes as another cause, the Goods and Consumer Services (utility bills, electricity, water, telephone, mail, shipping, advertising in mass media, services and rights in radio programming and production and the payment of radio and television and the payment of public and official events inside and outside of Ecuador), which amount increased from $ 2,327 million in the first half of 2012, to $ 3,549 million in 2013.

The Fiscal Policy Observatory also questions debt levels with public bodies, autonomous and multilateral governments, as well as other sources such as the bilateral credits with China.

Experts say that keeping the economy growing only in public spending is not sustainable, especially if one takes into account that the new government budget includes an increase of about 15% compared to 2012, ie from $ 26,109 million to $ 31,000 million.

On last May 30, President Correa said that the new budget, which will be approved by mid-year, will have an increase of 15% compared to last year.