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Ecuador News

In austerity move, Moreno orders cut in government salaries, sale of airplane, cars and other property

President Lenin Moreno has ordered a 10% reduction in salaries for 7,242 government workers, the sale of a presidential jet and hundreds of other assets owned by the government.

President Lenin Moreno

“The current economic situation requires  the government implement strong austerity measures,” the president said in his Monday night national television broadcast. “We are asking the highest paid public employees to bear part of the burden of restoring health to the government budget and we thank them for their sacrifice.”

The president said he has asked all government agencies heads to provide an inventory of property owned, including real estate.

Moreno said money raised from the sale of one of two presidential aircraft, several luxury cars and a variety of other government owned property will be invested in Casa para Todos, a government program to provide housing for low income families.

Moreno, who submitted a new federal budget to the National Assembly on Tuesday, repeated an earlier pledge to protect the poorest and most vulnerable segments of the population from budget cuts. “The impact of budget adjustments will fall on those best able to absorb them,” he said. “I will protect those in greatest need.”

In comments on Tuesday, Moreno said that an economic recovery has started but that it is weak. “We have to be absolutely honest about the country’s economic situation,” he said. “Yes, there are signs of growth but they are insubstantial at this point and we cannot assume the economy will recover on its own. The government must take the lead in belt-tightening effort.”

17 thoughts on “In austerity move, Moreno orders cut in government salaries, sale of airplane, cars and other property

  1. The U.S could learn some lessons from the present Govt. When you are in debt you don’t just keep spending but make cutbacks. Starting with the top Govt. employees shows a strong resolve to get the economy on track. Going on continual golf outings using Air Force one is not the answer. I am sure our Senators and Congressmen are not doing large dinners at taxpayers cost? Yeah, right!

    1. Joe – You said, When you are in debt you don’t just keep spending…”
      Well, if you are the country that prints the money that the rest of the world uses (pretty much, but esp Ecuador), then yes, you can just keep spending. It will all end horrifically for all of us, but that never stopped any Empire psychopaths in past history.

    2. The prior government took lessons from Hugo Chavez on spending petrodollars and on how to little by little weaken democratic institutions such as the media and the judiciary.

      1. No, Bill, this discussion thread is about whatever people want to discuss and in a forum read largely by gringo expats, the topic of U.S. profligacy for years under statist free spending policies is certainly germane.

        Need a reminder of how bad that spending is? One glance at this will tell you the story:

        Bill, I know you have children and grandchildren. It seems to me this would concern you very much.

      2. Apparently you think this site is for you to sit around and snipe others that carryon meaningful conversations. You thought wrong.

  2. Instead of slowly allowing the thieves that run our government drain the economy of millions of dollars then run to Miami and live on the beach, start putting them in the Greybar Hotel until their cases are resolved. A huge chunk of the deficit could be repaid shortly.
    If caught stealing from the government—come up with a punishment that works to deter.
    Across the board, get rid of the top 20% government wage earners! They are the ones that are doing nothing but enriching themselves on the labors of many. Set back and watch the problem go away!

  3. Sensible austerity, honesty about the financial situation and general transparency? How absolutely wonderful. Combine that with Moreno’s tolerance of opposition voices and press freedoms and I’d say this man has earned my immediate respect and admiration. I pray that this remains the case during his entire term.

    1. I agree. I am a relative newcomer…having only been in Ecuador a year…and I don’t have anywhere near the understanding…basically none…of the local politics.

      However, President Moreno appears to be sincerely concerned with doing what’s best for the country as a whole, not the few and that’s refreshing.

      1. Amen.

        Now for a different matter. I’ve noticed that you have become the whipping boy for a fool on the GP forum. What ever did you do to stir that venomous beehive? I’m as good as anyone when it comes to calling out people’s lies or errors, but that woman just has it in for you for no apparent reason.

        1. Thanks…I appreciate your noticing. I have been very busy lately and haven’t had much time to post.

          I am quite certain that someday soon I will manage to create some type of controversy…it probably comes with the territory of believing we have an obligation to share our opinions in general and to try to help each other when we can.

    2. Living within one’s means is a very interesting argument. We expats need for Ecuador to become solvent so they can afford to keep taking care of us in our final hours of need.

      1. Keep signing over your social security checks, and there will be someone working hard to keep you alive, even if your on life support.

      2. Collectively, perhaps, but some of us have actually had the foresight and sense to take provide for ourselves in our “final hours of need.”

    3. Yet, austerity doesn’t always work it can stunt growth. It is always a complicated issue and easy to take positions on the surface of it. Then again you could question that growth is desirable or overrated for May reasons. In the end with population growth, dwindling resources and destruction of environment economies need to become sustainable. By the way there is a happiness index. Denmark is the most happiest country by this measure. Denmark is a socialist democracy. 60 % of the people work for or with the government. There are many societal systems. Capitalism is something only to be tolerated as those that buy into it’s insanity or are driven unnaturally. ( you said this is a forum for discussing anything is this Ok by your standards or no……. )

      1. Some just don’t get the ideology that somewhere in the middle is the best solution rather than one extreme or the other. Extremism in any form is almost always counterproductive.

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