Venezuela to spend oil income on social programmes

[Judi Lynn]

Venezuela to spend oil income on social programmes
Irish Sun
Saturday 23rd April, 2011
(IANS)

Venezuelan President Hugo Chavez has announced that extra income from the country's oil exports will be used for social spending.

Venezuela, South America's biggest oil producer, has been receiving sharply higher income from its oil exports in recent months. Global prices on Venezuelan oil averaged $107 per barrel last week, while the 2011 state budget was balanced with the $40 per barrel benchmark, RIA Novosti reported.

'I have signed a decree that authorises spending additional revenues from oil sales on the implementation of various social programmes for the country's population,' Chavez, who will seek re-election next year, said on national television Friday.

The decree primarily hikes the so-called oil windfall tax, introduced by Chavez in 2008, from 60 percent to 95 percent on revenues from oil prices higher than $100 per barrel, giving Venezuela's socialist leader enough room to conduct populist policies.

More:
http://story.irishsun.com/index.php/ct/9/cid/2411cd3571b4f088/id/773148/cs/1/

[Judi Lynn]

1. Venezuela to set up fund

Venezuela to set up fund
Posted on » Saturday, April 23, 2011

CARACAS: Venezuela will set up a fund to distribute windfall revenue from high global oil prices, President Hugo Chavez said, adding that he expected prices to continue rising due to the violence in Libya.

South America's biggest oil producer, which pumps almost three million barrels per day, has enjoyed sharply higher income recently.

It normally underestimates oil prices when making financial plans, and its 2011 budget was based on an assumption that crude would average $40 a barrel this year. US oil futures settled at $112.29 on Thursday, while Brent crude was $123.99.

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Venezuela's oil sector has been the driving force of Chavez's self-styled socialist "revolution," contributing funds for everything to education, health and sports programmes.

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