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Ecuador 2010 Budget Draft Totals $21.28 Billion - Source

QUITO -(Dow Jones)- Ecuador's government has proposed a $21.28 billion budget for next year, an 11% increase on the $19.17 billion budget proposed for 2009, a high-level official told Dow Jones Newswires Friday.

Ecuador's government submitted the 2009 and the 2010 budget proposals to the National Assembly on Friday, together with the required four yearly budget proposals covering the years 2009 to 2013.

According to the new constitution, approved last year, the executive branch must submit a budget forecast for each four-year period, in addition to the annual budget.

So far this year, the government has been working with a budget proposal of $ 15 billion.

The increased amounts for the 2009 and 2010 budgets could cover central government and public spending. The Finance Minister didn't give any explanation.

The country's economic policy minister, Diego Borja, has said that approximately 70% of the 2010 budget will be used to cover current expenditures, especially salaries for the public sector.

Local analysts said the 2010 budget will maintain the government's heavy public spending which is unsustainable in the long term.

Government forecasts say Ecuador's economy will grow about 3% next year, and 1% this year.

As of Friday, the National Assembly has 30 days to approve or change the budgets.

On Friday the Assembly also received the national development plan for the 2010-2013 period.

Depending on oil prices, Ecuador plans to invest between $18.9 billion and $ 22.30 billion from 2010 through 2013.

-By Mercedes Alvaro, Dow Jones Newswires; 5939-9728-653; mercedes.alvaro@ dowjones.com

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  11-06-091613ET
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