The decree gives authorities more flexibility in using government funds to deal with any problems.
Eruptions beginning Friday have shot ash more than two miles (five kilometres) into the sky, spreading fine gray powder over roads, homes and cars in the region as far as the capital 30 miles (50 kilometres) to the north.
Presidential legal secretary Alexis Mera said further ash explosions and some pyroclastic flows on the volcano's western slopes yesterday led officials to evacuate some nearby villages.
Authorities already had restricted access to the park that surrounds Cotopaxi and suspended ascents of the peak, which is popular with mountaineers.