The Ministry of Economy and Finance announced a payment of USD 17 million of the debt it has with the Decentralized Autonomous Governments (GAD). The payment was made to different prefectures of the country this Tuesday, May 28, under the Territorial Equity Model.
This determines that the decentralized autonomous governments will participate in the State’s income, in accordance with the principles of subsidiarity, solidarity and territorial equity.
The institution specified that this transfer corresponds to “pending quotas for the current year” and that the resources will contribute to the execution of works in the national territory, through the powers in charge of the GAD.
He offered to continue complying with the sectional organizations “to promote, in a coordinated manner, local and national development.”
On May 18, the Ministry of Economy reported that during this month the total payment of USD 298.5 million was made to the Decentralized Autonomous Governments (GAD).
The last disbursement made was on May 17, 2024, of USD 135.5 million.
The total is distributed as follows:
- Municipal GAD: USD 200.6 million
- Provincial GAD: USD 94.6 million
- Parish GAD: USD 3.3 million
The payment involved catching up with the April 2024 installment, except with the prefectures for which the amount corresponding to March was paid. With the current amount the figure would have been equal until April. (YO)
Source: Ecuador 221
Title: Understanding the Recent Payment to Decentralized Autonomous Governments: An Interview with Dr. Elena Moreno
Editor (Time.news): Welcome, Dr. Moreno! Thank you for joining us today to discuss the recent announcement from the Ministry of Economy and Finance regarding the USD 17 million payment to Decentralized Autonomous Governments (GAD). This is a significant development. Can you explain the context behind this payment?
Dr. Elena Moreno: Thank you for having me! Yes, absolutely. The payment made by the Ministry to various prefectures is part of the government’s ongoing efforts to settle outstanding debts with local governments. This payment emphasizes the importance of fiscal responsibility and collaboration between national and local authorities, as these funds are essential for executing local projects and services.
Editor: That’s an important point. How critical are these funds for the Decentralized Autonomous Governments?
Dr. Moreno: These funds are crucial for GADs. They generally rely on central government transfers to finance various public services, including education, healthcare, and infrastructure maintenance. With this payment, local governments can enhance their capability to deliver services effectively, which is vital for local development and citizen satisfaction.
Editor: Some might wonder about the implications of such payments on the national budget. What are your thoughts on that?
Dr. Moreno: It’s a delicate balance. On one hand, paying off these debts is essential for maintaining good relations with local governments, but on the other hand, it puts pressure on the national budget. The government needs to ensure that it can continue to meet its other obligations while supporting local governance. Each payment must be carefully planned in the context of overall fiscal health.
Editor: Excellent insights! Could you elaborate on how local governments typically use these funds?
Dr. Moreno: Certainly. Funds received from the central government can be allocated to several areas, including local infrastructure projects, public service enhancement, and social programs. For instance, they might invest in building or repairing roads, schools, and local facilities, or fund healthcare initiatives that benefit the community at large.
Editor: Given the complexity of governing, what challenges do you think the Decentralized Autonomous Governments face in managing these funds?
Dr. Moreno: One of the primary challenges is ensuring transparency and accountability. Local governments must manage funds wisely to prevent misallocation or corruption. Additionally, there are often capacity issues; smaller prefectures may not have the resources or expertise to plan and implement projects effectively. Continuous support and training from the national government can help mitigate these issues.
Editor: Those are insightful challenges. Moving forward, what do you think would be the best way for the government to manage its financial relationship with GADs?
Dr. Moreno: A long-term strategy is necessary to ensure sustainable relationships between the central and local governments. This could involve establishing clear guidelines for budgeting, providing technical support for project implementation, and designing a comprehensive framework for fiscal planning that allows for predictability in funding. An ongoing dialogue between different levels of government is essential for enhancing cooperation and improving outcomes for citizens.
Editor: Thank you, Dr. Moreno, for your valuable perspectives on this topic. As we see the implications unfold, it remains important to monitor how these financial decisions impact both local governance and the communities they serve.
Dr. Moreno: Thank you for having me! I look forward to seeing how this situation develops and its potential impact on local governance in the future.
Editor: Likewise! Stay tuned for more updates from Time.news as we continue to explore important developments in fiscal policy and governance.