The Venezuela budget 2012 that has been presented by Jorge Giordani, the Finance and Planning Minister, to the National Assembly recently, asked for expenses to be increased to 300 billion bolivars or 69.7 billion dollars in 2012. The allotted fund for 2011 budget had been 204 billion bolivars or $47.4 billion.
Venezuela Budget 2012 Highlights:
The basic aim of the 2012 Venezuela budget is to promote economic growth through increased expenditure.
The budget will look to channel public funds to various government initiatives and socio-productive domains.
Since the debt situation is becoming worse with each passing day in the Eurozone the other important economic blocks around the world are supposed to experience a slowdown in overall growth as well.
The Venezuela budget for the upcoming fiscal will look to protect the national economy from the after effects of such phenomena.
The GDP of Venezuela is estimated to grow by 5 percent by 2012. The budget will prioritize the fortification of the local industries and continue investing in the various housing, employment and agricultural initiatives of the national administration.
The 2012 Venezuela budget has been calculated with an estimated crude oil price of 50 dollars per barrel in the international market. But as of 2011 fiscal the price of Venezuelan crude oil is approximately 100 dollars for each barrel. This step has also been taken to make sure that Venezuela does not face any problem in case the international prices of oil drop or the global economic condition becomes worse.
The 2012 budget bill has also revealed that if the earning of the government exceeds expectation it will provide more funds to the socio-productive programs.
In 2012 Venezuela is expected to earn oil revenues worth 67.8 billion bolivars or 15.7 billion dollars.
This is supposed to account for 22.8 percent of the aggregate national income of this OPEC member nation.
55.4% of Venezuela s income for the upcoming fiscal will come from non-oil sectors and 21.8 percent will be contributed by the internal taxes.
Venezuela is expected to get 22.8 percent of its national income through hydrocarbon exports. But according to Jesus Faria, a Congressman and the Vice President of the Development and Finance Commission of the National Assembly of Venezuela, this is a reduced level from previous budgets. This is also reflective of how well the productive sector of Venezuela is working.
Venezuela Budget 2012 – Expectations:
Jesus Faria has stated that the 2012 budget is a commendable one because it continues the commitment of the national government to improve overall standards and quality of living of the Venezuelans.
The legislator from Caracas, the Venezuelan capital, has stated that the 2012 budget will have a long term and positive impact and continue the plans that are mentioned in the Plan Simon Bolivar 2007-2013. The budget is supposed to deal with critical areas like poverty, unemployment and malnutrition. Venezuela has already made some progress in these areas and the 2012 budget will look to carry forward that trend.
FONDEN, the National Development Fund of the Venezuelan government, has contributed a major part of the social expenditure. But recently the organization has come under attacks from the main opposition which has questioned its reliability. Faria, though, has stated that its contributions played a major part during the 2009 global economic crises and the electrical problems during 2010 but the opposition is still unable to comprehend the major economic progress made due to FONDEN.
In the last 10 years the government has put in at least 400 billion dollars in various social initiatives in domains such as healthcare, food security, education and democracy at the basic levels. The yearly average for social investment in the previous three years has been $60 billion.