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Ecuador's Correa says to overhaul finance ministry

Sat Sep 13, 2008 2:35pm EDT

QUITO, Sept 13 (Reuters) - Ecuadorean President Rafael Correa on Saturday vowed to shake up the finance ministry and accused some officials of trying to undermine him by overstating spending projections if a new constitution is approved this month.

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The leftist president said his government would need an additional $200 million next year -- not some $2 billion estimated by officials including Finance Minister Wilma Salgado -- to pay for social programs if voters approve the constitution in a Sept. 28 referendum.

"We will take actions in that ministry and kick out those parasites," Correa said during his weekly radio show. "These people love to alarm the country."

Correa said Salgado was fooled by some ministry career officials who are trying to bring down his socialist government. He did not say whether Salgado would be asked to quit.

Local media have speculated that Salgado was considering resigning after only two months as the top economy official.

If approved, the new constitution would bolster Correa's powers over the country's economy and key political institutions.

Critics and opposition politicians say the government's increased spending has failed to spark economic growth and would wreck the oil-producing country's finances.

The government has proposed to the legislature a $15 billion budget for next year, nearly 14 percent higher than the amended 2008 budget. (Reporting by Alonso Soto; Editing by Xavier Briand)



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