Submission to the National Assembly of amendments to the Organic Code of Planning and Public Finances and any other relevant laws, in consultation with Fund staff, to (i) limit the discretion of the Executive to amend the annual budget that is approved by the National Assembly and introduce a robust framework for a contingency allocation in the budget, (ii) restrict the use of CETES (treasury certificates) for short-term financing and develop a plan of reducing the current stock of CETES, (iii) explicitly define the institutional coverage of the public debt and expenditure rules to be the consolidated nonfinancial public sector (NFPS); (iv) adopt binding annual targets for the NFPS non-oil primary balance; (v) introduce the necessary mechanisms to support the effective operation of expenditure rule and its interaction with the Constitutional “golden rule,” (vi) adopt a standardized definition of arrears and strengthen their monitoring and reporting, and (vii) introduce a 90-day payment deadline for the current and capital expenses associated with the acquisition of goods and services from the date of their accrual (“devengo” according to Ecuadorian statutes).
To strengthen fiscal management and clarify the fiscal rules framework.