Deputy Minister of Finance highlighted the reduction of accounts payable and progress in financing for public works.
In response to criticism and allegations from experts and organizations that the budget execution in the Annual Investment Plan (PAI) —which is aimed at carrying out public works— has been low, the Ministry of Economy and Finance (MEF) has declared that it expects to execute $200 million per month for public investment, in addition to having achieved a reduction of $940 million in accounts payable.
This was stated by the Deputy Minister of Finance, Daniel Falconí, during a space on the Ekos channel, on August 15, where he indicated that in July 2024 the budget execution in public investment doubled in relation to May of the same year.
The official also pointed out that this indicator reinforces the fact that the MEF has already found and identified the sources of financing, in addition to the fact that the resources have already begun to be subscribed and disbursements have arrived. Therefore, they expect that investment will accelerate.
In this regard, Falconí said: "We could expect that on average each month, from now until December, there will be an accrual of $200 million in public investment."
On the other hand, regarding the State's outstanding debts, Falconí mentioned: "If we analyze the payments to suppliers and the payments to municipalities, we have managed to reduce the accounts payable by $940 million" from the balance they closed in December to the balance they have now.
In the private sector, he said that overdue accounts payable were reduced by around $500 million; with the decentralized autonomous governments (GAD), by around $415 million.
In this regard, Falconí explained that in the case of the GADs this means almost a month and a half of assignment of the territorial equity model, since he emphasized that they found a fairly high level of arrears, of close to $1.1 billion, in accounts payable as of December 31, 2023.
In addition, with the Ecuadorian Social Security Institute (IESS) they have managed to make payments and not be delayed any more, from March onwards.
In the case of the Social Security Institutes of the Armed Forces (ISSFA) and the National Police (ISSPOL), the official said that they are working "intensely" to solve the gap in arrears they had up to the previous year.
Meanwhile, a large part of the public investment is expected to be allocated to the electricity sector, which was declared in a state of emergency on August 15 under Executive Decree 355.
The emergency declared for the electric sector will be aimed at carrying out all necessary urgent actions in the sector and its affiliated entities to address the acquisition, leasing and additional generation of electric power that will allow reducing the repercussions of the current energy crisis, thus achieving the continuity of the public electric power service. (I)
