CARACAS, Tuesday February 26, 2013 | Update

Venezuela's deficit estimated at USD 11.40 billion

Additional revenues are partly offsetting financial imbalances

The reform of the tax on oil windfall revenues will translate into to some extra USD 2.24 billion (File photo)
Tuesday February 26, 2013  11:42 AM
Against the backdrop of devaluation in Venezuela, Planning and Finance Minister Jorge Giordani pointed out that "this is not a forex rate adjustment for fiscal purposes. We have income." He added, however, "It is vital to adjust the accounts." Although the foreign exchange rate adjustment certainly guarantees additional income, it partly offsets the fiscal imbalance. Therefore, the search for further resources continues.

The report on the economic and financial impact of the reform of Law on Special Contribution for Windfall and Exorbitant Oil Prices reveals that the central Government faces a gap between income and expenditure early this year of USD 11.40 billion.

It is highlighted that the additional funds resulting from the change in the distribution of the oil windfall tax will be partially oriented to reduce the deficit. 

The report produced by the Venezuelan National Assembly is based on the figures provided by the oil industry. The document shows that the tax reform guarantees some USD 2.24 billion to the Treasury -"an amount that allows reducing part of the deficit and avoiding the need to take on new debts."

Translated by Jhean Cabrera

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