Noboa allows financing of health, education, and justice 2027 with non-permanent revenues

The President of the Republic, Daniel Noboa Azin, declared the exceptionality that allows the financing of permanent expenditures for health, education, and justice with non-permanent revenues within the General State Budget for the 2027 fiscal year. The measure was formalized through Executive Decree No. 527, signed in Guayaquil on October 29, 2026, and published in the Official Registry Sixth Supplement No. 401 on Friday, October 30, 2026.

The scope of the decree

Article 1 of the decree declares “the exceptionality for the financing of permanent expenditures for health, education, and justice, with non-permanent revenues, for the General State Budget of the 2027 fiscal year,” in accordance with the reports issued by the Ministry of Economic and Productive Development. The regulation does not set amounts or percentages: it enables the constitutional mechanism for the next fiscal year.

Article 2 orders that ministry, in its capacity as the governing body of the National Public Finance System (SINFIP), to record the exceptionality in the 2027 General State Budget. Article 3 empowers it to issue, if necessary, the regulations for the preparation, issuance, and verification of reports containing consolidated information on the budget proforma and liquidation.

The constitutional and legal basis

The decree is based on Article 286 of the Constitution of the Republic, which requires permanent expenditures to be financed with permanent revenues, but admits that those for health, education, and justice be priority and, “exceptionally,” financed with non-permanent revenues.

It also invokes the final paragraph of Article 126 of the Organic Code of Planning and Public Finance, which prohibits borrowing for permanent spending except for those three constitutional exceptions, “following the qualification of the exceptional situation” by the President of the Republic, and the first unnumbered article of Book II of the same legal body. The justification is completed by Article 215 of the General Regulation of that code and the powers granted in numerals 3 and 5 of Article 147 of the Constitution.

The reports supporting the decision

The processing is detailed in the decree itself and is supported by three documents from the Ministry of Economic and Productive Development, all dated October 28, 2026:

• Memorandum MDEP-VGF-2026-0328-M, from the Acting Vice Minister of Finance, which submitted Technical Report MDEP-VF-VE-SP-SPF-SPFSPNF-2026-001 justifying the exceptionality for 2027.
• Memorandum MDEP-CGAJ-2026-0889-M, from the Acting General Coordinator of Legal Counsel, which validated and forwarded memorandum MDEP-DAJEF-2026-0227-M, containing the legal report from the Directorate of Economic and Financial Legal Counsel.
• Official Letter MDEP-MDEP-2026-0676-O, through which the Minister of Economic and Productive Development submitted the technical and legal reports and the draft decree to the General Legal Secretariat of the Presidency of the Republic.

Verification and validity

The sole general provision establishes that compliance with the fiscal rule exceptionality regarding permanent income and expenditures shall be verified through reports containing consolidated information from the budget pro forma and the budget liquidation. The final provision entrusts the execution of the decree to the Ministry of Economic and Productive Development and sets its validity from the date of signing, without prejudice to its publication in the Official Registry.

The regulation bears the certification of the General Legal Secretary of the Presidency, Aldrin Fernando Gómez Valdiviezo, and was published in the October 30, 2026 edition along with other executive decrees of the same date.

The scope of the decision is structural: it enables the Government to cover current expenditure for three social sectors using temporary resources, such as asset sales or public borrowing, in a budget yet to be approved. The decree also transfers to the Ministry of Economic and Productive Development the responsibility of documenting and verifying this exception before the National Assembly and the citizenry.

Source: Official Registry, Sixth Supplement No. 401, Friday, October 30, 2026, Section I (official reference: Executive Decree No. 527).