USD 2.24 billion for Venezuela's Treasury Office upon oil tax reform

Venezuela's recent reform of the tax on oil windfall revenue not only guarantees increased sales of US dollars to the central bank by state-run oil company Pdvsa, but also additional resources for the Treasury.

Based on the economic and financial report of the tax reform, produced by the National Assembly, the Government will receive additional USD 2.24 billion due to the move. 

The estimate surpasses that of Pdvsa, which calculated additional income for the Treasury at USD 318.08 million.

The approved reform will allow the Executive Office to keep up the spending pace reported in 2012.

Analysts are confident that the higher the income, the higher the expenditures. Apparently, there is no chance of cutting expenditure. Back in January, spending jumped 67% as against a year earlier.

Likewise, the volume of extraordinary operations in 45 days accounted for USD 1.46 billion. In other words, the official budget that began at USD 62.9 billion in 2013 is now at USD 64.5 billion. 

Translated by Jhean Cabrera