Chavez admits tough economic situation
Saturday, February 21, 2009
The President acknowledged that the sharp fall in oil prices has created a "hard and difficult" for Venezuela, whose budget this year was calculated based on $ 60 a barrel, almost double the $ 33.93 in which Venezuelan basket closed this Friday. Chavez, however, promised to keep the costs of missions are considered "sacred."



The president changed his denying the negative impact of the global crisis in paísCaracas .- President Hugo Chávez said Friday that it is "hard" and "difficult" for Venezuela that the oil revenue falls to "half" as a result of the global financial crisis, but said that despite the situation his government will not cut social programs.

Chavez said during a civic-military parade in the western city of Coro, "The oil price is very low. It's in 30, $ 35 a barrel, and this year's budget based on what we did with 60 (U.S. dollars) . is about half the oil revenue. It is hard to Venezuela and difficult. "

The Venezuelan oil basket closed Friday at $ 33.9 per barrel, representing a decrease of $ 1.99 respect to the previous week.

The government agreed this year to a fiscal budget of about 77,860 million dollars, which was done under a scenario of an average price of a barrel of Venezuelan oil $ 60, almost double the current price of crude.

The president said in radio and television, despite the reduction in oil revenue "we're not going to cut the budget to missions. The missions are sacred."

Venezuela remains highly dependent on oil because it financed nearly half the budget and represents 94% of the country's revenues from exports.

Chavez urged his ministers and governors allied to "sowing everywhere the social production of the means of production which will create conditions for social justice."

The president said that after the victory he achieved in the referendum last weekend, which approved the constitutional amendment on presidential re-election indefinitely, "and there are no plans to make bags. No suitcases. I have no luggage. No I'm leaving. Chavez is not going. "

Minister for Economy Ali Rodriguez, announced this week that the government will make a reduction in public spending to cope with falling oil revenues as a result of the global financial crisis.

Rodriguez reported that the government plans to "eliminate some unnecessary imports" and "more rigorous" in raising taxes to "better balance income and expenditure in the budget

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