Venezuela Nearly Doubles Budget as Maduro Prepares for Election

Andreina Itriago Acosta and Nicolle Yapur
·1 min read
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(Bloomberg) -- Venezuela nearly doubled its 2024 budget to 730 billion bolivars or the equivalent of $20.5 billion as President Nicolás Maduro prepares for presidential elections and forecasts additional spending for the defense of the Essequibo territory.

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This is the first time that the defense of the Essequibo region will be formally included in the budget, Vice President Delcy Rodríguez said from congress on Wednesday. The funds are aimed toward “defending our Essequibo and Venezuela from external aggressions,” she said without adding details.

President Nicolás Maduro, widely expected to run for a third consecutive term next year, has rattled regional allies by calling for a large chunk of land claimed by neighboring Guyana known as Essequibo to become a Venezuelan state. Maduro and Guyanese President Irfaan Ali are set to meet on Thursday to discuss a deescalation of the border dispute.

Rodríguez said about 77% of the budget will be dedicated to “social spending.” While this year’s budget is almost twice the $11.5 billion set for 2023, the calculation is made using Wednesday’s official exchange rate for the bolivar, which has weakened a little more than 50% in the past year.

While important, it’s difficult to estimate how much the government wants to increase spending without an estimated average exchange rate, said Jesús Palacios, a senior economist at Caracas-based financial consultancy Ecoanalítica.

A majority of the country’s lawmakers granted preliminary approval to the budget Wednesday. A final vote is expected Thursday.

Read More: Maduro Does Whatever It Takes to Stay in Charge in Venezuela

(Updates with analyst comment starting in the fifth graph)

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