Lima, December 7, 2021Updated on 07/12/2021 08:26 am
The dollar traded in a downward trend on Tuesday in Venezuela According to DolarToday after it was learned that the income from oil exports will finance 61% of the government’s spending in the South American country.
The price of the dollar reached 4.71 digital bolivars in the informal market in Venezuela, a level 2.80% lower compared to the price of the previous day, according to data from the portal DolarToday.
Reuters reported that the government of Nicolás Maduro contemplates that the income from raw exports will finance 62% of the national budget by 2022.
PDVSA’s revenue stream has been hit by falling production due to years of divestment and mismanagement, as well as the impact of sanctions against the oil company since 2019.
But this year the industry has increased its crude pumping slightly with the help of allied countries and has managed to sell more than 500,000 barrels per day abroad, despite Washington’s measures.
“The Government has been developing a series of negotiations that aim towards the relaxation and subsequent elimination of sanctions,” the government said in the document. “While in parallel it continues to work on the reaffirmation of ties and bridges with the new strategic partners.”
The 2022 budget project estimates that oil revenues to cover health, education and salary expenses, among others, would be equivalent to about 8.2 billion dollars according to the exchange rate calculated by the Venezuelan issuer. And with these funds it would cover 61% of the total expenditure.
The proposal, which indicates that next year’s budget would represent some 13.56 billion dollars, does not mention the price of crude oil or average production as it used to be until 2016, the last year in which national spending was disclosed.
In 2021, oil revenues have financed 29% of spending, according to the document, which shows that until August of this year those contributions were equivalent to 1,298 million dollars.
The communications ministry and PDVSA did not immediately respond to a request for comment on the matter.
With information from Reuters