Economy  

The Venezuelan Executive Branch, in a failed constitutional reform, had plans to change the model of resources allocation to governor's offices and mayoralties. However, after Venezuelans rejected such changes in a referendum last year, the government had to preserve the same structure, through which the regions are given 20 percent of their regular funds, a part of oil revenues and 15 percent of the monies collected from value added tax.

But the President's Office insists that such model should be changed, as the bulk of the funds are concentrated in six states, namely, the Capital District, Aragua, Carabobo, Lara, Miranda and Zulia.

Based on the 2009 Budget Bill, the resources that will be transferred to the governor's offices and mayoralties, as well as the community councils, will total USD 16.74 billion, or 36.7 percent higher than in 2008 (USD 12.23 billion). This rise is, in part, related to the growing oil contribution that will take place next year.