18JUN25 'Seven out of every ten tax dollars goes to pay the salaries of the Central Government bureaucracy
June 18, 2025 | La Hora-
📈"Between 2020 and 2024, spending on salaries by the Ecuadorian Central Government grew by more than $1.2 billion, representing up to 70% of tax revenue. This is madness!!
Ecuador central government's salary expenditure rose from $8.592 billion in 2020 to $9.862 billion in 2024, an increase of $1.27 billion in five years, according to data from the Fiscal Policy Observatory. The government redundant bureaucracy alone employs more than 490,000 people.
This salary expenditure figure does not include local governments or public companies and represents increasing pressure on public finances already burdened by deficits and arrears.
On average, central government salary spending has increased by $254 million annually. In addition, between 2020 and 2024, a total of $2.095 billion was allocated to pay personnel linked to investment projects alone—another $419 million annually, on average.
For José Xavier Orellana, a former McKinsey & Co. advisor and economic consultant, this phenomenon is exacerbated by the fact that payroll spending increases automatically, even without hiring new employees. "The payroll grows without you hiring anyone: $300 million a year," he says. This is due to seniority levels, bonuses, and automatic seniority adjustments.
Daniel Noboa's government has implemented measures to increase tax revenue—such as eliminating the diesel subsidy for large tuna vessels, increasing electricity rates, and increasing taxes on the mining sector—but Orellana believes the structural imbalance also requires spending control.
Faced with this situation, he anticipates that the government "will go all out" to close the fiscal gap, including a new tax reform planned for the 2025-2026 period. However, he warns that there are also ways to save without raising taxes.
McKinsey & Co. has a study that estimates savings of between 15% and 28% in public procurement. In Ecuador, this amount exceeds $6 billion annually, equivalent to a potential savings margin of between $900 million and $1.7 billion annually if overpricing, inefficient processes, and poorly negotiated contracts are eliminated.
Added to this is a study by the Inter-American Development Bank (IDB), which reveals similar losses in the execution of public works due to poor planning, oversizing, and corruption.
Economist Andrés Rodríguez emphasizes that this burden is difficult to sustain, even more so when social demands for more personnel are mounting in sectors such as health, education, and justice, or in oversight bodies such as the Comptroller's Office or the Mining Regulation and Control Agency (ARCOM).
According to figures from the Ministry of Labor, the number of public employees in the Central Government, not including local governments or state-owned enterprises, amounts to 490,946. The salaries of this entire workforce represent between 60% and 70% of all tax revenue each year. Simply put, between 6 and 7 dollars out of every 10 Ecuadorians pay in taxes are used to cover these salaries alone.
#Ecuador #governmentjobs #salaries #bureaucracy #overexpenditure
🤠iffin you gonna move down or remain in Ecuador on into 2025, get prepared for whats a coming down the pike🥷🏼its not and has not been just a Coastal & #GYE thang, its also a Sierra & Metro #Quito Thanggy as well👮🏻♂️💰
My 2025 NewYears Resolution is more time out on the La G range, zz style, 🎸🥁🎸 cuzz (imho) we gonna dang sure be a needin it🥷🏼if anybody wants to no longer be an outlaw? Call me to join our Qtowne Quito gun club and get legal to tote with a 55hr CCW Course,
now a days The CCW is pretty much streamlined down to this:
plan on about $300 for to join the gun club,about $200 or up to $300 for the CCW course,about $300 for psyche, psycho and toxico exams,
a 9mm Taurus for say $1200.
a 9mm CZ for say $1500.
aprox $80 to $100 for a box of 50rds 9mm FMJ
i see peeps now a days getting legally armed in about a 3-4 months time frame, kinda like a tuff assed visa process!
'Always be prepared' - BSA & SA,
"When guns are outlawed, only outlaws will have guns" - Louis L'Amour (1908-1988) Western novelist of ...
09OCT26 (23:15)🚨'Alert ECUADOR ORDERS TEMPORARY DISCONNECTION OF ELECTRICITY SUPPLY TO CERTAIN INDUSTRIES
⚡ "The Ministry of Environment and Energy announced that it has ordered the temporary disconnection of electricity supply to industries classified as "High Voltage 1" and to specific "Medium Voltage" industrial users, due to current conditions within the national electrical system.
📢 According to the statement, the measure is a response to hydrological conditions at power generation plants and difficulties in supplying fuel to power-generating barges caused by sea conditions.
🏠 What is the goal of this decision?
According to the authorities, the measure aims to prioritize electricity supply to Ecuadorian households while operational limitations persist.
🔌 Service restoration for the affected industrial users will take place once technical conditions allow, the Ministry reported.
⚠️ ATTENTION: The information provided does not specify the duration of the measure or the full list of ...
28JUL 2026☣️ 'Biological War: A Scenario' is a 2026 nonfiction book by American investigative journalist Annie Jacobsen.
Published in the United States by Dutton on July 28, 2026, the book examines the potential consequences of a large-scale biological attack or the accidental release of an engineered pathogen.
The book uses a fictional near-future catastrophe to describe how governments, health systems, armed forces and civilian populations might respond to the rapid spread of a highly lethal biological agent.
It combines the fictional scenario with accounts of historical biological-weapons programmes,
interviews with scientists and national-security officials, and discussion of advances in genetic engineering, synthetic biology and 👾artificial intelligence.
It is a thematic successor to Jacobsen's 2024 book -
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Nuclear War: A Scenario, which employed a similar narrative technique to describe the escalation of a hypothetical nuclear conflict!..." -
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