• by IPS Correspondents (caracas)
• Wednesday, November 16, 1994
• Inter Press Service

CARACAS, Nov 16 (IPS) - The Venezuelan government approved a 1995 budget of some 15.5 billion dollars after a hectic rush to find funding for a proposed 861 million dollar increase.

Information Minister Guillermo Alvarez said the budget was increased by 444 million dollars based on the privatisation of some 30 businesses, which will generate an estimated four billion dollars in gross income.

The rest of the increase was based on increased customs income and the release of debt bonds in 1995. The total budget is 4.3 billion dollars - or 38 percent - higher than the 1994 budget.

Alvarez said the project had been passed immediately to the Parliament for urgent consideration so that it could be approved by Nov. 30, as required by law.

If the proposal is not approved, the 1994 budget will be "rerun," meaning that the only increases in each item would be "additional credits" authorised by Congress, a process that would present significant administrative obstacles.

Over the past five days, the cabinet of President Rafael Caldera and representatives of the political parties held a "race against time" to find funds for the increases they hoped to include in the new budget.

The two ruling parties hold just 25 percent of the two-house Parliament, where they are outnumbered by the traditional Social Democratic and Social Christian parties, while the left-wing Radical Cause also holds 20 percent of the seats.

As a reslt, the government did not blindly defend its formula to balance the budget proposal, instead presenting its political rivals with a series of options for generating the needed funds.

As a rule, the opposition parties have tried not to block governability during Caldera's term, and after reviewing the options, they agreed to discuss the various proposals.

According to Alvarez, "it will be during the parliamentary debates that the different factions express their opinions," although he added that "one may assume that a basic agreement will have been reached with some factions."

© Inter Press Service (2014) — All Rights Reserved. Original source: Inter Press Service

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