Origin and destination of resources of the budget of the Municipal GADs: study of the Canton Morona

Abstract

The Autonomous Municipal Decentralized Governments were created with the purpose of having autonomy to plan and execute investment projects through the obtaining and generation of different sources of income, which solve the execution of the same, according to the current regulations in Ecuador, to contribute to the development and improvement of the population within the scope of its jurisdiction. The research provides information on the origin and types of income acquired by the municipal GAD and the procedure for obtaining it, as well as its applicability and use, based on the study of the current legal regulations, the Organic Code of Territorial Organization, the Organic Code of Planning and Public Finance, among others, and the practicality of the municipalities based on experience and good governance. The methodology used was the case study, considering as object of dissertation to the Municipal GAD of the Canton Morona, analyzing the approximation to the legal norms and investigating the basic characteristics of the case study, it examines the phases of elaboration of the budget, which allows support the data collected in the investigation. A case study has been chosen in view of the fact that the municipalities of Ecuador operate under similar rules with some exceptions. One of the main results indicates that investment expenditures are the most important type of expenditures within GADS since they reflect the total resources invested in the execution of programs and projects for the benefit of the population. Among other aspects, it is concluded that it is essential that taxpayers become aware of the importance of complying with the tax obligations to the Municipality, so that the entity can manage the funds collected by the inhabitants to carry out works that benefit the growth and development of jurisdiction.