Venezuelan President Hugo Chavez has announced that additional revenue from oil exports of the country will go to social spending, RIA Novosti. Venezuela, the largest South American oil producer, has been receiving strong revenue increases its oil exports in recent months. The world price of Venezuelan oil averaged $ 107 per barrel last week, while the budget State 2011 is balanced with the $ 40 per barrel benchmark.
"I signed a decree authorizing spending the additional revenues from oil sales on the implementation of various social programs for the country's population," said Chavez, who is seeking reelection next year, on national television on Friday . Decree mainly
tax increases on oil called unexpected, presented by Chávez in 2008, 60 percent to 95 percent of revenues in oil prices of $ 100 per barrel, leading socialist leader of Venezuela is enough to carry out populist policies.
Chavez said the new law would allow the government to allocate $ 100 million in public housing projects and raise wages nationwide.
also predicted that the war in Libya lead oil prices in the near future.
Venezuela produces about 3 million barrels of oil per day and sells about half of it to the United States. U.S. equity futures Oil closed at $ 112.29 Thursday.
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