Pdvsa's contribution to the Treasury climbs to 5% in 2012 only

The fixed payment limits to royalties and the distribution of resources among welfare programs and parallel funds impacted the ordinary fiscal allocations made by Venezuelan state-run oil company Pdvsa as the annual growth of such contributions in 2012 was reported at 5%.

In a statement, the oil industry informed having allocated via royalties, dividends and income taxes some USD 19.9 billion as against USD 19 billion recorded in 2011.

Although the Venezuelan oil basket yearly average in 2013 was USD 100 per barrel, the oil company has managed to raise its contributions to the central Government via other sources different from the ordinary budget, which is intended to feed the budget.

Indeed, since 2011, Pdvsa has been directing a portion of its revenues to social-production plans. In 2011, the Executive Office modified the legal framework to secure further funds for such special programs.

Analysts have pointed out that whenever there are more resources in the parallel funds, the Executive has more chances to expend them. In the meantime, all the needs arising from the ordinary budget are met with additional credits.

According to Pdvsa's data, the company's contribution to welfare programs, including housing, amounted to 40.3 billion in 2012, similarly to that in 2011.

Translated by Jhean Cabrera