Venezuela - Public finance

Petroleum provided about 67% of total revenues in 1992, while personal and corporate income taxes represented only 29% of total current revenues that year. Although revenues increased greatly in the 1980s, expenditures grew at an even faster rate, mainly because of heavy spending to combat the nation's pressing social and industrial problems. Falling oil prices in the mid-1980s caused a severe deterioration in the deficit. In 1994, subsidies and other current transfers accounted for 32% of the federal government's expenditures; goods and services (including wages for government employees), 30%; interest payments, 21%; and capital expenditure, 14%.

Budget surpluses were recorded in 1990 and 1991 (0.4% and0.8% of GDP, respectively), due neither to fiscal restraint nor enhanced tax collections, but largely to privatization revenues. In 1992, however, the government recorded a deficit equivalent to6.1% of GDP. According to the Central Bank, the central government's deficit in 1994 amounted to 6.8% of GDP, but it declined to 2.8% in 1998. Petroleum revenues accounted for about half of the government budget in 1999, but amounted to only about 3.9% of total GDP.

The US Central Intelligence Agency (CIA) estimates that in 2000 Venezuela's central government took in revenues of approximately $21.5 billion and had expenditures of $27 billion. Overall, the government registered a deficit of approximately $5.5 billion. External debt totaled $34.5 billion.

The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.