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Venezuela:
To face the crisis, escape forward
Venezuela Venezuela traces today its own strategy to face the world
crisis, away from the traditional belt-tightening in bad times that
includes an ambitious 225 bilion-dollar investment plan.
In an anti-crisis plan revealed Saturday, president Hugo Chavez
exposed as key aspect the defense of social expenditure, an opposed
stand to the neoliberal recipes recommended in the past.
The plan includes restrictions dictated by the need to adjust the
national budget, estimated on an average of 60 dollars per barrel of
oil, closer to the reality of an average 40-dollar barrel.
As a result, the budget was readjusted down by 6.7 percent from the
beginning of the year and reduced from 167.4 billion of bolivars (77.8
billion dollars) to 156.3 billion bolivars (72.7 billion dollars). The
reduction will include cuts to administration expenses and increases of
the tax on aggregate value (IVA) from 9 to 12 percent of the expected
domestic debt.
For the state apparatus: remodelations, new buildings, unnecessary
publicity, corporate gifts, feasts, renewal of technological platforms,
trips abroad and others are eliminated from expenses. Also it
establishes a top salary for officials and an adjustment to the top
level of salaries for hired employees.
Domestic debt (bonds and credits) rises from 12 billion bolivars (5.5
billion dollars) to 34 bilion bolivars (15.8 billion dollars), level
that Chavez said "leaves a margin to maneuver."
For the authorities, the financial and economic strength of the South
American nation, supported by the measures taken in the past years like
foreign exchange control, allows the country to face the crisis without
affecting its social or economic development plans. In that sense,
Chavez confirmed investments for expansion already approved. As for
development priorities three areas were tagged: energy (petroleum, gas,
electricity and coal), food and housing.
As an expression of the official decision not to put on the shoulders
of the poor the weight of the crisis, Chavez announced an increase by 20
percent of the minimum salary, equivalent today to 372 dollars a month.
Caracas, Prensa Latina |
