LatinNews Regional Monitor: Andean Group - 11 March 2020

* Ecuador’s President Lenín Moreno has announced a package of economic reforms intended to boost government revenue by US$2.25bn, in response to the country’s recent economic deterioration. Moreno said the annual state budget had been based on projections of oil prices averaging US$51 per barrel – the collapse in global prices on 9 March will therefore leave a US$2.9bn hole in public finances. His proposals include additional taxes of between 4% and 8% for public servants, and of 0.75% for businesses, as well as austerity cuts totalling US$1.38bn, indicating reduced spending on public services, and renewed efforts to eliminate government subsidies. Planned cuts to fuel subsidies were a driving force behind  widespread protests in October 2019, and Moreno’s new proposals were immediately condemned by groups at the forefront of these protests, including indigenous organisation Confederación de Nacionalidades Indígenas del Ecuador (Conaie), and the Revolución Ciudadana (RC) opposition movement.

End of preview - This article contains approximately 154 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial