“The public sector bubble will burst,” warns Gabriela Calderon

“Ecuador has a fiscal problem, and fiscal problems are not reduced by increasing tax collections on with more borrowing, they are solved by cutting off spending.”  That is the criterion of analyst Gabriela Calderon, a columnist for El Universo daily, about the economic crisis the Ecuadorian economy is facing.

“A big expense, I would say the big white elephant in the room would be the spending on subsidy, despite the drop in fuel prices, this year will reach approximately 2 000 million. Given the fall in fuel prices, this is the ideal time to eliminate those subsidies and to compensate the most vulnerable people … “

Other expenses to eliminate would be the coordinating ministries, and other actions that demonstrate the will to put the fiscal accounts in order.