Venezuela's public expenditure climbs 6.7% in 2012
The Treasury spending amounted to USD 96.27 billion
According to data provided by the Finance Ministry, public expenditure amounted to USD 96.27 billion in 2012, up 6.7% in real terms (after inflation) with respect to 2011, when public spending hit USD 75.81 billion.
Given the hike in public expenditure, growth was reported mainly in construction, government services, and trade, revealing the growing dependence of the economy on public expenditure.
The figures of the Finance Ministry revealed that increased spending is related to the larger size of the State.
Since 2007, the State has increased its presence in different sectors by nationalizing industries and creating social ownership enterprises. It is all part of a system highly dependent on public sector's funds.
Add to this the public funds injected into welfare programs known as missions, which have climbed since 2011. In 2012, a part of public spending was allocated to the Great Mission Housing Venezuela and the Great Mission Knowledge and Work.
The more state-owned companies and missions, the larger the size of the State payroll. This has undoubtedly hit the State's accounts.
According to the Finance Ministry, 33% (USD 31.62 billion) of expenditure reported in 2012 was related to salaries.
Translated by Jhean Cabrera
At the recent UN climate summit President Nicolás Maduro gave a speech on global warming highlighting the fact that "Capitalism has ignored over decades nature's capacity to load and recover," and, accordingly, "if we want to change climate, we need to change the system."