The State will save $ 120 million by reducing subsidies until 2019

Ecuadornews:

The Government has not yet established mechanisms to review other subsidies. Yesterday the cabinet of the productive sector analyzed the results of the measures implemented. The President said that a plan for the airports is ready.

The elimination of the state subsidy in super gasoline and reduction of the subsidy in industrial diesel will generate savings of about $ 42.7 million this year. While for 2019 $ 120 million is projected. This was reported by Eduardo Jurado, Secretary General of the Presidency, after the meeting held by the President of the Republic, Lenin Moreno, with authorities of the cabinet of the productive sector.

From August 27 the super gallon costs $ 2.98. Previously it was $ 2.26 to $ 2.40, it depended on the service station.

The Government made the decision to update the price to international securities. On the other hand, the diesel used by the shrimp and fishing sectors increased as of September 14. The gallon of diesel 2 and premium diesel was $ 1.19, including the profit margin.

For other fisheries the value was set at $ 1.04. On the issue of subsidy, Jurado did not mention when or how the working groups will be formed to focus on other subsidies still in force, as part of the Prosperity Plan. Additionally, he indicated that until now, the remission of interest, fines and surcharges has benefited 89,000 people with an average collection amount of $ 700 per taxpayer.

Only in the Ecuadorian Institute of Social Security (IESS) were more than $ 10 million obtained through 43,000 users. The goal is to get $ 189 million for the process in this entity. With respect to foreign investment, the secretary of the Presidency said that until the end of the year is expected to reach $ 995 million, without counting future awards.

Airports in view

The Cabinet began with a brief intervention by President Lenin Moreno on the conditions of the airports built in the previous administration. The President assured that they were built “without any planning” and without the co-responsibility of the decentralized autonomous governments (GAD) where they were built.

Although he did not elaborate on details, Moreno said that the Government is preparing a strengthening plan with the tourism chambers, with the aim of making these airports “attractive”.

He gave the example of the Jumandy airport in the city of Tena, Napo province, since from Quito the air route takes the same time as by land (about three and a half hours).

This is due to the time it takes to transfer to the Mariscal Sucre airport, located in Tababela, and waiting an hour before boarding the plane. In the Tena air terminal, $ 48.8 million were invested, according to the Ministry of Transport and Public Works (MTOP). The ideas that are contemplated to strengthen airports are to create packages with flights, hotels and economic tours. (I)

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/ecuador-ahorro-reduccion-subsidios