Government-by-Government Assessments: Ecuador
Ecuador made significant progress by ensuring that budget execution did not deviate significantly from budget projections. During the review period, budget documents were publicly available online, although complete information on debt obligations, including oil-for-loan agreements, was not publicly available. Budget documents were substantially complete and generally reliable. However, state-owned enterprises’ financial information, including debt obligations, was unavailable. Additionally, the Ministry of Economy and Finance has broad discretion to modify income and expense levels established in the national budget by up to 15 percent without National Assembly approval. Ecuador’s supreme audit institution audited the government’s annual financial statements, and the government made its reports publicly available within a reasonable period of time. The process for awarding natural resource extraction licenses and contracts was outlined in law and appeared to be followed in practice. Basic information on natural resource extraction license and contract awards was publicly available. Ecuador’s fiscal transparency would be improved by:
- publishing complete information on intragovernmental loans and oil-for-loan agreements;
- making financial information related to state-owned enterprises publicly available, including debts; and
- narrowing Ministry of Economy and Finance’s discretion to modify income and expense levels established in the approved national budget.