Ecuador: With lower oil prices, taxation now accounts for more than 50 percent of income

telesurtv.net reported in his annual address to the nation Sunday, President Rafael Correa lauded the achievements and advances for workers during the previous year’s administration despite the massive drop in oil prices. In response to the fall in the international price of oil – an important source of income for Ecuador – the government implemented measures to protect economic growth, resulting in a 3.8 percent growth rate for 2014, nearly four times the regional average. RELATED: Rafael Correa and Ecuador’s 21st Century Socialism The President said the government measures meant no public investment or project had to be canceled due to reduced government income. By contrast, other major oil exporters such as Colombia have pushed for cuts in public expenditures as well as layoffs for oil sector workers. The Correa government has also worked to diversify its income sources since first arriving to power in 2007, with income from taxation now accounting for more than 50 percent of income. Read Article

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