20 July 2010
Venezuela Invests 60% of Budget in Social Spending

President Hugo Chávez said on Monday, July 19 that the Venezuelan government has been investing a majority of the country’s oil revenues in social spending so all Venezuelans can have access to social security.

The president noted that in the last 11 years of government 60 percent of the budget has been invested in social spending, leading to positive results such as the decrease of child mortality and the increase of school enrollment.

“Oil income was recovered because it had slumped. We have a government that distributes resources by giving priority to social policies,” said Chávez during an event where he granted savings accounts to retirees and pensioners under Decree 7401. Through the presidential decree, the Venezuelan government provides pensions to women above the age of 55 and men above the age of 60.

The Venezuelan president said that while the European “rich countries” have lowered pension benefits and salaries, the Bolivarian government is increasing social spending.

“They are cutting salaries, and additionally a lot of people are being fired. A lot of them have been told ‘If you don’t want to get fired then accept a salary cut,’” said Chávez.

Furthermore, the Venezuelan leader recalled that in some countries the ages to apply for pension benefits have increased, limiting this prerogative, while Venezuela has been including more of the elderly in this benefit.

AVN/Embassy of the Bolivarian Republic of Venezuela to the U.S. Press and Communications Office / July 19, 2010