Venezuela's deficit down almost 50% upon devaluation
The gap between income and expenditure went down from 5.5% to 3.3% of the gross domestic product
Upon devaluation, Information and Communication Minister Ernesto Villegas posted on his Twitter account that the Government's deficit slipped from 5.5% to 3.3% of the gross domestic product, thus dropping 2.2 points.
Although authorities have provided very few details about the Government's financial performance, only now they conceded that the gap between income and expenses widened in 2012.
Even though the Venezuelan oil price exceeded the USD 100 ceiling public debt soared, spending skyrocketed amid presidential and gubernatorial elections in 2012.
Despite the current gap, there are no signals that public spending would be cut. In January 2013, the Government increased expenditure by 67% over the previous year.
Think tank Ecoanalítica asserted that the forex rate adjustment from VEB 4.30 to VEB 6.30 per US dollar would yield more bolivars per petrodollars. Based on the firm's estimates, the Government will receive additional USD 13.4 billion this year.
Translated by Jhean Cabrera
José Vicente Rangel clearly said: "We are not conducting negotiations threatened with a gun in the head." He warned behind closed doors in the midst of the social upheaval occurred during the oil strike in 2002 and 2003. Dissenting Timoteo Zambrano answered back that no other option was available: "The thing is that otherwise, you do not negotiate."