Venezuela’s government estimates income from crude exports will finance 61% of its national budget next year, according to a document seen by Reuters, as U.S. sanctions complicate sales by state oil company PDVSA (PDVSA.UL).
By Reuters – Deisy Buitrago and Mayela Armas
Dec 6, 2021
PDVSA’s income has been hit by production falls after years of divestment and bad management, as well as sanctions levied against it in 2019.
Global allies have helped Venezuela increase output this year and it sells an average of 500,000 barrels per day despite Washington’s sanctions, improvements hailed by President Nicolás Maduro, whom the United States does not recognized as the country’s leader.
The budget document did not specify any production or price per barrel estimates.
Neither the communications ministry nor PDVSA responded to requests for comment.
“The government is developing a series of negotiations that point toward the loosening and then elimination of sanctions,” the government said in its budget proposal. “Meanwhile in parallel we continue to work on the reaffirmation of ties and connections with new strategic partners.”
There is no evidence Washington is considering lifting sanctions.
Oil income – equivalent to some $8.2 billion by government calculations – will cover health and education spending and public sector salaries, the proposal estimates.
The total budget is equivalent to some $13.56 billion.
This year oil income financed about 29% of the budget, around $1.3 billion through August.
The proposal did not lay out government estimates for economic growth, inflation or the exchange rate for next year. The central bank has not released economic data since the end of 2019.
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Read More: Reuters – Oil sales to finance 61% of Venezuela’s 2022 budget-document
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