A fiscal policy analysis described from current Ecuadorian constitution

Abstract

The Ecuadorian economy in a large extent depends from the Fiscal Policy, since the execution of the Monetary Policy is limited, because the country in 2000 adopted a dollarization after a strong and pronounced financial crisis; which was responsible for the increase in poverty levels and limited level of growth and development. Ecuador also keeps a fiscal deficit close to 3.300 million dollars, but this is not the unique problem that the country has, since in order to counteract the gap, public debt keeps growing and it is no healthy for Ecuadorian economy if the state do not manage the tax collection system, public debt and the state spending to achieve an economic and development growth. It is not an easy task for the Ecuadorian authorities to enforce the Fiscal Policy objectives ordered in current Constitution, as it have proved insufficient to solve the competitiveness and productive structural problem that Ecuador has. It is necessary to describe the Fiscal Policy established in the country, in order to assess whether the government is properly managing state goods and services, since its actions are based on favorable conditions generation for the entire population development.