Economic outlook is uncertain because there are more expenses than income

The State accumulates delays with different sectors and debts with multilateral organizations.

Expenses continue to exceed income and the economic outlook is uncertain.

Between January and May, there was income of USD 8,551 million. That represents 19% less than the same period of 2019, when revenues of USD 10,542 million were recorded.

While, between April and May, revenues fell 24.3%, from USD 1,524 million to USD 1,153 million. These figures include the drop in tax collection due to the impact of the coronavirus pandemic.

According to the Ministry of Finance, between January and May, the treasury collected USD 5,618 million in taxes, 17.9% less than that collected in the same period of 2019.

But, the fall in revenues is also due to a sharp decrease in the oil sector due to the constant stoppages in the pumping of crude oil.

In May, Ecuador’s oil production reached 333,369 barrels per day or 37.5% less than in the same month of 2019. This is equivalent to a reduction of 199,752 barrels per day.

According to the secretary of the Fiscal Policy Observatory, Jaime Carrera, until the end of the year there will be few tax and oil revenues, which will cause the Central Government to accumulate arrears.

The Government has obligations in wages, transfers to institutions such as the IESS and Autonomous Governments. It owes the latter USD 588 million.

The difference between income and expenses in May was covered with money from multilateral organizations.

Source: Primicias, social networks