Fast-track executive action
President Daniel Noboa cannot be accused of procrastination in the past three months. Since he assumed office last May, he has sent three symbolic bills with the character of economic urgency for approval by the legislature: the National Solidarity Bill, the Intelligence Bill and the Public Integrity Bill. These bills aim to control corruption and organized crime and to reorganize the public sector. All the bills were rapidly approved in Congress thanks to the official majority of 77 legislators. On the other hand, two of them were partially considered by the Constitutional Court, which has not yet ruled in favor or against the legal content questioned.
Following this controversy with the Constitutional Court, Noboa announced the layoff of approximately 5,000 public officials and the elimination or merger of five ministries–an executive action that has generated approximately 24 demands of unconstitutionality before the same court. However, the executive continues forward with this decision, and in the IESS alone, nearly 500 people have already been removed—during one of the worst internal crises of the Institute, especially in the health area. President Noboa also announced two new pieces of tax reform legislation, one to tax corporate retained earnings at a progressive rate according to amount, and another to tax dividends, also following a progressive table which, in the opinion of experts, punishes small dividends in favor of large ones.
Two weeks ago, Minister of Energy Ines Manzano launched an ambitious portfolio of projects for the oil sector totaling $47,367 million in direct investments and concessions to revamp oil production. In July, production reached its lowest level in 20 years at 31,830 barrels/day, affecting exports, fiscal revenues and the production of derivatives, and hence increasing the cost of subsidies.
Now read on...
Register to sample a report