Economy
The behavior of oil prices in the first quarter of 2009 has worsened the fiscal gap that began to grow in 2008.

The Ministry of Economy and Finance issued the public sector's results for the first quarter of the year. They include data from the central government, the state-run oil company Petróleos de Venezuela (Pdvsa), the Bank Deposit Guarantee and Protection Fund (Fogade), Social Security, and non-financial state companies.

The figures show that in the first quarter of the year, the deficit of the public sector stood at USD 3.58 billion, which is equivalent to 0.9 percent of GDP. The financial results of Pdvsa had direct effects on the fiscal gap.

Meanwhile, the operating surplus of the oil industry amounted to USD 2.74 billion in the first quarter of the year. This means a 76 percent fall compared to the same period of 2008, when it amounted to USD 11.95 billion.

This operating surplus of the state-run oil industry includes fiscal contribution to the Treasury through royalties, income tax and tax on dividends as well as investments on exploration projects and maintenance of production.

The main reason for the decrease of Pdvsa's contribution was the fall of oil price. During the period, the crude oil price averaged USD 40.14, while the reference price for the Venezuelan oil basket to calculate 2009 budget was USD 60.

Translated by Gerardo Cárdenas

Mayela Armas H.
EL UNIVERSAL