Ecuador's municipalities face crisis as government owes $643 million in budget transfers

Ecuador’s municipalities face crisis as government owes $643 million in budget transfers

1 month ago

Ecuador’s Municipalities Face Crisis Over Unpaid Government Transfers

The Association of Municipalities of Ecuador (AME) has declared a crisis affecting the country’s local governments due to the executive branch’s failure to pay over $643.7 million in budget transfers, resulting in halted construction projects and interruptions to essential services across various regions, reports 24brussels.

This financial shortfall has manifested in critical issues such as diminished access to drinking water, poorly maintained streets, suspended waste collection, and weakened social programs. The AME’s president, Patricio Maldonado, stated in a press conference that the outstanding debt severely impacts citizens’ quality of life.

“If President Daniel Noboa can call for a march, like the one he will hold on September 11 in Guayaquil, the municipalities also have that right,” Maldonado asserted, hinting at potential protests against the government’s financial negligence. He insisted that the demonstrations of mayors and citizens should be respected and not criminalized.

The AME highlighted that the lack of financial resources has led to severe situations, including the failure to disburse salaries for municipal employees for over four months and the cessation of vital projects. The mayors characterized the government’s failure to fulfill its financial obligations as a “constitutional violation,” undermining municipal autonomy and infringing upon the rights of the populace.

In response, the AME announced plans to lodge a lawsuit with the Constitutional Court to enforce the government’s compliance with its financial duties. They stressed that the law mandates these transfers as essential for local governance.

Moreover, the mayors urged the National Assembly to press the Executive Branch to meet its financial commitments and called for Parliament to act decisively to ensure resources are allocated to municipalities. The AME underscored that the lack of transfers not only hampers local management but also jeopardizes the overall welfare of citizens nationwide.

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