Venezuela's public spending estimated at USD 123 billion in 2012

 
Venezuela's public spending is to climb further in the last quarter, thus pushing the FY2012 national budget to VEB 528.8 billion (USD 123 billion), according to research firm Ecoanalítica.

FY2012 national budget was estimated originally at USD 69.3 billion, but given a significant increase in additional loans, such number will jump by 77.6% at the end of the year.

Additional loans, currently amounting to USD 27.6 billion, may end at USD 53.7 billion in FY2012.

In the FY2012 budget law, the Government forecast that this would be a period of expansion, which was true. The commitments that have arisen in the course of the year have boosted expenses and in the last few months of the year, obligations are to climb.

Monthly public spending through September averaged USD 7.9 billion. In the fourth quarter, such amount would double, thus hitting USD 16.9 billion.

In order to increase disbursements, the Executive Office is trying to increase the funds available. On October 20, President Hugo Chávez said that earnings from state-run banks amounting to USD 280 million were already deposited in the Socialist Efficiency Fund.

Add to this the funds obtained by way of debt. Figures from the Ministry of Finance show that 95% of the debt scheduled for this year had been placed up to October 19. This means that the government has sold USD 20.9 billion in debt bonds.

Momentum

Research firm Ecoanalítica, in a report called "Will the spending spree continue?" claimed that "growing spending, mainly focused on certain sectors such as construction, will remain the main engine of the economy, and based on Minister of Planning and Finance Jorge Giordani's statements, it will be essential to maintain the path of economic growth."

The firm noted that if public spending actually hits USD 123 billion this year, as projected, "real expansion will be of 16.2% compared to last year."

marmas@eluniversal.com