Análisis comparativo del subsidio a los combustibles en el Ecuador y su impacto en el pib, periodo 2006 – 2020.

Abstract

Subsidies in Ecuador were introduced in 1974 with a military regime where its president was General Rodríguez Lara, after a coup d'état he assumed the presidency, in these years the oil boom was experienced, where high oil prices they generated economic surpluses allowing the application of subsidies. Among the countries that most allocates their percentages of GDP in the maintenance of fuel subsidies is Ecuador with around 7% and 9% respectively, this represents a great economic cost and the high demand for consumption and the investment involved in satisfying this demand generates economic losses, due to the low prices that are handled in this product. In the last 5 years, that is, from 2016 to May 2021, the Ecuadorian State allocated USD 5,706 million in fuel subsidies, which represents 5.7% of the GDP of the year 2020, which reached USD 98,808 millions. According to Suárez (2021) in Ecuador it has been evident that the subsidies have been inefficient, regressive and with a high cost, eliminating them would save millions of dollars that can be used to reduce the fiscal deficit and the Ecuadorian debt or to invest in health , education, infrastructure, etc. In addition, eliminating them would reduce the high fuel consumption that generates great environmental pollution and also smuggling. Given this, the government could reduce expenses between USD 130 million and USD 178 million in fuel subsidies.