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
A shipment of over 30,000 tons of phosphate arrived at Puerto Cabello port in late July on board the Shi Long Ling, a Chinese-flagged vessel that began its long journey in northern Africa. The cargo boat docked on July 26 after traveling more than 3,200 nautical miles. Undoubtedly, this would just be considered one in many cargo ships crisscrossing the oceans if it were not for the fact that Venezuela has denounced Western Sahara occupation by Morocco and yet purchases the territory's natural resource products from the occupying power.