Cuenca Cuts USD 37.5 Million From Its 2026 Municipal Budget

Cuenca’s municipality reduced its 2026 budget from USD 300.90 million to USD 263.40 million, a reduction of USD 37.51 million, or 12.46%, according to El Mercurio’s August 12 report.

The municipality says the adjustment reflects updated revenue collection and execution figures, the reprogramming of projects, and compliance with a new rule in the Código Orgánico de Organización Territorial, Autonomía y Descentralización (Cootad) governing minimum priority allocations.

Where the reduction lands

Investment spending fell from USD 195.47 million to USD 163.32 million, a reduction of USD 32.14 million. The allocation for the municipality’s project-execution unit fell from USD 76.29 million to USD 50.77 million.

The revised budget moves USD 23.2 million in project resources out of 2026. Named projects include Parque Los Migrantes, phases of the Milchichig parks, Parque del Concierto, the Pavimentación Rígida Cuenca se Transforma II program, bridges and pedestrian crossings, and a mobility solution connected to Las Américas and Turuhuayco.

The municipality also plans to reschedule CAF credit toward the complete runway reconstruction at Mariscal La Mar Airport in 2027. A sovereign guarantee remains pending, and an October review may revisit some programs.

The mobility line that changed most

The budget for an intersection mobility solution fell from USD 7.67 million to USD 195,463. The report also says bicycle and electrification projects now have allocations of USD 2 and that related consultancies could take three to four months.

Why residents should watch this

This is a revised spending plan, not a claim that every named project has been permanently canceled. The practical question is which projects move later, which are redesigned, and which receive new allocations after the municipality’s review.

For expats, the budget matters through roads, parks, airport planning, public-space improvements, and the timing of neighborhood works. Anyone making a housing or business decision around a promised project should treat the revised budget as the current planning baseline and verify later updates with the municipality.

Source: El Mercurio