The package of economic measures announced on Tuesday night, August 21, by President Lenin Moreno seeks to accelerate the reduction of public spending and reduce the fiscal deficit. “I have made economic decisions that aim to restore prosperity to the homeland.
We are going to give solutions to the problems that concern us all today, “said the President in a national chain. The actions begin by eliminating 20 public institutions, including ministries, institutes, agencies and public companies.
At the beginning of the Government there were 40 ministries, but they were reduced to 27 and the goal is to leave 20. They will disappear, for example, the Ministry of Justice and the National Secretariat of Communication (Secom). Others will merge, such as the Ministry of Foreign Trade with the Ministry of Industries, the Internal Revenue Service (SRI) with the Customs Service, and more.
For public companies, such as the National Telecommunications Corporation (CNT), Tame, Correos del Ecuador, among others, the plan is to merge, delegate and optimize. An annual savings of $ 350 million is estimated.
In the social area, Moreno announced that 101,000 families will receive the increase of the Human Development Bonus ($ 100) or their restitution. The austerity within the Government also includes the elimination of the payment of cellular fees to officials of high positions, sale of 1,000 vehicles and retirement of security personnel for some ministers.
In this way, the projected savings is $ 150 million. Another $ 400 million is calculated by restricting direct contracting or use of the special regime. Through the public bank, productive credits will be granted for $ 1,300 million. The construction will allocate $ 800 million, to the agricultural sector $ 200 million and $ 140 million for the parishes.
In parallel, $ 235 million will be allocated to micro and small businesses, and to the popular and solidary economy. “The reactivation of the productive sector is and is still underway,” said Moreno.
Eduardo Jurado, Secretary of the Presidency, and Richard Martínez, Minister of Economy and Finance, also spoke with him. Jurado said that the price of super gasoline will be updated to $ 2.98 per gallon and its quality will be improved from 90 to 92 octane.
Diesel will not be met and its subsidy for the business sector will be optimized. The estimated savings are $ 100 million. To address the targeting of subsidies, the Government will convene a “large national dialogue roundtable”.
Martinez explained the Law of Productive Development, which will facilitate the realization of $ 9.500 million for investments from 114 companies. He assured that the primary fiscal balance will be achieved until 2021 and a global fiscal deficit to less than 1% of GDP. (I)