Venezuela will spend $566 million from the Fonden development fund, an off-budget spending vehicle, to finance a host of infrastructure projects handpicked by President Hugo Chavez, according to an official press release. The money was earmarked to pay for the finishing stages of public transportation projects in Caracas, according to the statement released Monday. Chavez said that the projects would be paid for by resources in Fonden, his favorite spending instrument. The Fonden is controlled by the president without any legislative or central bank supervision and receives funds from the central bank's international reserves and Petroleos de Venezuela SA, the state oil company. Additionally, the government usually approves additional spending through the National Assembly, which so far this year stands at 31 billion bolivars ($14.4 billion), 23% of the official budget, which is set at VEB137.5 billion. That money comes from additional revenue the government receives from high oil prices.
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