The new decree law that President Guillermo Lasso signed on September 5, 2023 proposes measures that would allow the next Government to cut expenses in the General State Budget. This is the decree law for the Balance, Organization and Transparency of Public Finances, which contemplates reforms to the Organic Code of Planning and Public Finances (Coplafip).
The measures include remission of interest on debts to social security and other public entities, as well as methodological adjustments that could result in fewer resources for education and health.
Since Lasso decreed the cross death, on May 17, 2023, and dissolved the National Assembly, he has presented seven proposed decree laws to the Constitutional Court. Until now, the only one that managed to overcome the Court’s filter was the tax reform or Law to Strengthen the Family Economy, which came into effect in June 2023.
Lasso proposes changing the calculation formula for increasing allocations for public health and basic education.
It proposes that the interest on the debt that the State has for 40% of the contribution it has to make to the pensions of retirees of the Ecuadorian Social Security Institute (IESS) be eliminated.
If the decree is approved, interest and fines could no longer be charged for late payments between public entities that are part of the State Budget. /The express