Ecuador’s National Assembly approves proposed budget for 2026

Core Viewpoint - Ecuador's National Assembly approved a $46.3 billion budget for 2026, focusing on social programs, security, and infrastructure development, reflecting a 13% increase from 2025 [1] Budget Overview - Total budget spending is set at $46.3 billion, which is 33.27% of GDP, based on a projected real GDP growth of 1.8% and a nominal GDP of $139.1 billion [1] - Total revenue is estimated at $46.3 billion, including $21.7 billion in current revenues, $8.5 billion in capital revenues, and $16.1 billion in financing [1] Expenditure Breakdown - Current spending is allocated $23.5 billion, with $1.8 billion for public investment and $10.5 billion for capital expenditures [2] - The budget projects an overall deficit of $5.4 billion, with a financing requirement of $10.5 billion primarily for debt amortization [2] Social Support and Local Government Funding - The budget prioritizes social support, with $6.3 billion allocated for transfers and subsidies, including $1.8 billion for social assistance programs and $3.9 billion for social security systems [3] - Transfers to local governments will total $4.1 billion, with mandatory funding for education and health increasing by $695 million each [4] Impact on Construction Industry - The 2026 budget is expected to have a mixed impact on the construction industry, with capital spending and public investment programs supporting infrastructure activity [5] - However, tight fiscal conditions and a significant deficit may limit the scale and timing of project execution, leading to moderate growth in the construction sector [5]