Additional spending for labor payment totals USD 2.72 billion

The adjustment of minimum wage and pensions, labor liabilities and welfare programs has an impact on the Venezuelan Treasury accounts.

While the Venezuelan government budgeted USD 14.64 billion in 2012 for minimum wages and pensions, the funds are insufficient. As a result, in a five-month term, additional credits for USD 2.72 billion have been okayed to cover labor liabilities.

Such operations intended to cover wages, pensions and grants, account for 34% of total credits warranted by the National Assembly until May 29, for USD 8.04 billion in the aggregate.

The out-of-budget expenditure will keep on the rise, in proportion to labor commitments. Only the 32% hike in minimum wages and social security pensions is as high as USD 4.18 billion.

To counter the impact of wages, the government ponders on operations by tranches. The first one was endorsed for the amount of USD 1.04 billion.

While extraordinary funds were countersigned, government agencies resolved to cover the first fortnight with rescheduled items.

In addition to the credits linked to the minimum wage, the National Assembly has backed operations for salaries and wages from other agencies for USD 581 million, plus USD 160 million for labor liabilities.

Benefits and grants from welfare programs known as missions have gotten USD 790 million. This sum of money includes a credit granted on Tuesday, May 29 for USD 54.39 million, to the recipients of Mission Barrio Mothers (economic aid for low-income mothers who shoulder many children).

Additional operations

Congresspersons, in addition to the funds for wages, also vouched for four credits, each for USD 232 million aimed at several government agencies.

Further, USD 51.62 million were endorsed to complete the Liberator's Mausoleum.

Translated by Conchita Delgado