LatinNews Daily - 22 February 2024

*Ecuador’s government led by President Daniel Noboa has presented its 2024 national budget proposal, which outlines US$35.54bn in planned spending. The budget, which will now be voted upon by the national assembly, plans for a fiscal deficit of US$4.81bn, with government revenue expected to total US$24.04bn and planned spending of US$28.85bn. Spending on security would increase by US$214m compared with 2023 as part of the Noboa administration’s crackdown on criminal gangs; a finance ministry statement said that available funding for security spending is expected to increase further when the ‘law to address the armed conflict’ comes into force, which includes a planned increase to the value-added tax (VAT) rate. Finance Minister Juan Carlos Vega said yesterday that the government will push ahead with a three percentage point increase to the VAT rate despite congressional opposition, using the president’s veto powers to overrule attempts by congress to limit the increase. The 2024 budget proposal is based on government predictions of 0.8% GDP growth, average annual inflation of 2.1%, and annual production of 156m barrels of oil to be sold at an average price of US$66.7 per barrel.