Ecuador’s National Assembly approves proposed budget for 2026

GlobalData

Mon, January 12, 2026 astatine 7:00 AM CST 4 min read

In December 2025, Ecuador’s National Assembly approved the government’s 2026 fund proposal, with 78 votes successful favour, 66 against, and 4 abstentions. The fund focuses connected societal programmes, security, and infrastructure development, with full fund spending acceptable astatine $46.3bn, equivalent to 33.27% of GDP, which represents a 13% summation compared to the 2025 fund spending. It is based connected projected existent GDP maturation of 1.8% successful 2026, with nominal GDP estimated astatine $139.1bn. The macroeconomic model estimates lipid accumulation of 165.5m barrels successful 2026, with an mean lipid terms of $53.5 per barrel, importantly beneath levels seen successful erstwhile years. Based connected these assumptions, full gross is estimated astatine $46.3bn, comprising $21.7bn successful existent revenues, $8.5bn successful superior revenues, and $16.1bn successful financing.

On the expenditure side, $23.5bn is allocated to existent spending, including wages and nationalist services, portion $1.8bn is earmarked for nationalist concern and $10.5bn for superior expenditures. The fund projects an wide shortage of $5.4bn, reflecting a $1.8bn spread betwixt imperishable revenues and expenditures and a $3.6bn shortage successful non-permanent accounts. To conscionable fiscal obligations and refinance debt, the fund includes a financing request of $10.5bn, astir of which—$8.4bn—is earmarked for indebtedness amortisation.

Despite constricted fiscal space, the fund continues to prioritise societal enactment and backing for section governments. Spending connected transfers and subsidies volition full $6.3bn, including $1.8bn for societal assistance programs specified arsenic the Human Development Bond and transport subsidies, and $3.9bn to enactment societal information systems for civilians, police, and the equipped forces.

Public concern nether the Annual Investment Plan volition magnitude to $2.2bn crossed 388 projects, chiefly focused connected energy, societal development, security, and nationalist administration. In addition, transfers to section governments volition scope $4.1bn, portion mandatory backing for acquisition and wellness is acceptable to summation by $695m each.

Overall, Ecuador’s 2026 fund is apt to person a mixed interaction connected the operation industry. While planned superior spending, nationalist concern programs, and transfers to section governments volition assistance prolong enactment successful infrastructure, nationalist buildings, and energy-related projects, choky fiscal conditions and a sizable shortage whitethorn constrain the standard and timing of task execution. As a result, the operation manufacture maturation successful 2026 is expected to stay moderate, with opportunities chiefly concentrated successful government-backed projects alternatively than large, privately financed developments.