Venezuela's deficit in 2013 to account for 3.9% of the GDP
The Ministry of Finance hopes for better results by the end of 2013
According to its current estimates, the Venezuelan Government will be facing a fiscal gap next year. As provided for in the draft Budget Law for fiscal year 2013, Venezuela will be suffering a deficit of 3.9% of the gross domestic product (GDP). Thus, income will not be sufficient to meet expenditure.
Although FY 2013 allocations will account for USD 92.1 billion and indebtedness for USD 22.1 billion, the authorities fear a fiscal deficit.
As explained by the Planning and Finance Minister in the budget law, the deficit will be attributed to "moderate estimates in oil revenues based on minimum risks. The estimates aim at preventing income fluctuations from harming the already established macroeconomic goals."
The legal instrument provides that the gap also stems from "ongoing spending of capital mainly oriented to invest in projects for social and production development with funds from growing liabilities. Allocations to keep up with operations in the public sector are wholly met by current income as set forth in the provisions for budgeting."
As outlined in the budget law, the minister hopes for "an improvement of the results (the deficit) by the end of the fiscal year sparked by oil windfall revenues."
Translated by Jhean Cabrera
A group of some 60 Venezuelan economists from across the country and from different generations and backgrounds, has met regularly in the past couple of years and now has brought forth a document explaining the reasons of the current emergency and outlining specific proposals on how to address the serious economic crisis the country has plunged into over the last three years.