Ecuador Redirects Diesel Funds to Social Programs

Ecuador has announced the elimination of its diesel subsidy, redirecting the $1.1 billion funds saved to social programs. The government contends that the subsidy has long been a financial burden while failing to benefit those in need. The change aims to enhance social welfare and fiscal sustainability.

In a significant policy shift, Ecuador's government announced on Friday the elimination of the nation's diesel subsidy, reallocating the saved funds to bolster social programs.

The government, in a statement on X, elaborated that the longstanding diesel subsidy had resulted in a $1.1 billion annual strain on fiscal accounts, with minimal impact on its intended beneficiaries.

The reallocation aims to enhance social welfare, ensuring that the funds are effectively utilized for those who truly need support, meanwhile enhancing fiscal sustainability.

(With inputs from agencies.)