CARACAS, Thursday November 08, 2012 | Update

Venezuelan gov't to create new financial structure

For the third time, Finance Minister Jorge Giordani called upon the National Assembly to undertake a fiscal revision

Giordani said that parallel funds have allocated USD 133 billion to projects (File photo)
Thursday November 08, 2012  10:14 AM

Venezuelan Finance Minister Jorge Giordani has asserted that in the next six-year presidential term a new financial and budgetary structure will be designed.

During the recent presentation of the draft Budget Law for fiscal year 2013 to the National Assembly Finance Committee, the finance minister underscored, "Next year's expenditure is quite important. It is part of the beginning of a new Government period."

Since 2005, the Executive Office has carried out a set of legal reforms enabling it to incorporate a parallel expenditure structure different from its ordinary one. The new structure is comprised by the National Development Fund, the Chinese Fund, among others.

Giordani explained that said "financial institutionalism" ensures financial resources for projects. He also reaffirmed that over the last seven years, the funds have allocated some USD 133 billion to programs from different areas.

During his presentation, the finance minister seized the opportunity to call for an in-depth fiscal reform and added, "Those who earn more will have to pay more."

Answering questions about the allocation of funds to the regions, Giordani stated that each state has received additional provisions, and urged to keep an eye on resources "to make sure they are transparently being used as the central Government does."

The finance minister also noted that Venezuela's debt accounted for 25.2% of the GDP.

Translated by Jhean Cabrera
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