Ecuador’s payments to suppliers, public services and VAT refunds rose 38% through August 2026

Ecuador allocated $5.291 billion between January and August 2026 for payments to state suppliers, public services and VAT refunds. The amount exceeded the same-period figure for 2025 by $1.454 billion, according to the Ministry of Economic and Productive Development.

Disbursements rose from $3.837 billion in the first eight months of 2025 to $5.291 billion in 2026. For companies working with public institutions, those transfers can provide cash to cover payroll, buy materials, repay loans and maintain contracts linked to health, education, security and infrastructure.

Social welfare received the largest share, at $1.126 billion. Infrastructure and telecommunications received $870 million, followed by security with $645 million, health with $598 million, education with $464 million, and environment and energy with $453 million. Production, agriculture and employment received $209 million, while other disbursements totaled $423 million.

The published figures do not specify how many suppliers received payments, how much covered overdue obligations or how long companies waited to collect. The total shows money disbursed during the period, but does not by itself establish how much the state still owes. That distinction is especially relevant for small businesses providing food, cleaning, transport or security services, because payment delays can affect workers and other businesses in their supply chains.

VAT refunds accounted for $503 million. Of that, $321 million went to older adults and people with disabilities, while $182 million came from the general fund. The ministry said spending on these refunds rose by $217 million, or 76%, from the same period in 2025. Older adults can recover up to $144.60 a month, subject to requirements set by the Internal Revenue Service.