Ecuador President Noboa Bypasses Fiscal Rule to Fund Recurring Costs in 2027 Budget

Executive Decree 527 authorizes Ecuador's 2027 General State Budget to fund permanent health, education, and justice expenses using non-permanent income, an exception to the fiscal rule. This marks a deviation from fiscal discipline norms, raising concerns about medium-term debt sustainability. The move signals a policy shift toward prioritizing social spending over strict fiscal consolidation, with uncertain market implications.

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