Venezuelan Government expenditure shoots up 67% in January
Public spending in January hit USD 10.13 billion
Based on the figures of the Finance Ministry, state governments and ministries were allocated some USD 6.04 billion in January 2012, compared to USD 10.13 billion in January 2013.
A report compiled by think tank Síntesis Financiera outlines that there are no signs of cuts in expenditure.
Analysts have asserted that the reported rise in expenditure last year led to a fiscal gap estimated at 8% of the gross domestic product (GDP).
Although the government has been pondering some actions to narrow the current deficit, it seems that spending cuts are not envisaged. In fact, expenditure in January 2013 exceeded by 18% that of December 2012, which totaled USD 8.74 billion.
Amidst increasing expenditure, the Executive Office has begun its search for further income. Last week, an adjustment on oil windfall revenues was approved so that state-run oil company Pdvsa could sale larger amounts of US dollars to the Central Bank of Venezuela (BCV) and guarantee additional petrodollars for regular expenses. Analysts are confident that the higher income, the higher expenditure.
The Finance Ministry's data shows that expenditure in January was mainly oriented to labor liabilities (USD 1.41 billion), up 35% with respect to the figure recorded in January 2012 (USD 1.04 billion).
Translated by Jhean Cabrera
At the recent UN climate summit President Nicolás Maduro gave a speech on global warming highlighting the fact that "Capitalism has ignored over decades nature's capacity to load and recover," and, accordingly, "if we want to change climate, we need to change the system."