Ecuador Spends USD 148.4M On Public-Sector Severance In First Half
Ecuador's public-sector restructuring is already visible in the investment budget.
The government spent USD 148.4 million in the first six months of 2026 on public-sector severance, including layoffs, post suppressions, resignation purchases and voluntary retirement incentives.
Budget Treatment
The spending is recorded in the Annual Investment Plan under the account called Programa Gestión del Subsistema de Empleo en el Servicio Público.
The account is treated as public investment and financed only with loans obtained by the state from internal and external sources.
Comparison
The first-half severance amount is larger than some social-support programs. The Joaquín Gallegos Lara bonus for people with disabilities cost USD 71.2 million in the first half of 2026.
Compared with the first half of 2025, spending on dismissals and other public-employee separations increased by USD 60 million, or 68%.
The number of entities reducing staff rose to 51 in the first half of 2026.
What to watch
The second-half risk is execution acceleration after the June 18 decrees to merge entities. If more separations are processed, the account could rise further and increase debt-financed fiscal pressure tied to state payroll restructuring.
Source
Primicias — “Gobierno destinó USD 148 millones para despidos y desvinculaciones de empleados públicos en lo que va de 2026”
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