Ecuador Proposes Deficit Spending To Boost Economy

QUITO, Ecuador (AP) — Ecuador's government is proposing a stimulus budget for next year that will run a $4.1 billion deficit in hopes of boosting economic growth to 6.8 percent.

Ecuador's economic growth rate plunged from 6.5 percent in 2008 to a projected 1 percent this year, because of the global fall in oil prices and a decline in the amount of money sent home by Ecuadoreans working abroad.

Finance Minister Maria Elsa Viteri says $1.6 billion is being earmarked for road, mining and energy projects.

Viteri said Wednesday that Ecuador will finance the deficit by selling bonds domestically. Ecuador defaulted on bonds last year, restricting its access to international credit markets.

Ecuador's congress has 30 days to approve the budget.