Venezuela dismisses devaluation and more taxes "for the time being"

The Venezuelan government has ruled out thus far the implementation of any adjustment measures, like for example increasing taxes or currency devaluation, reported on Tuesday Minister of Economy and Finance Alí Rodríguez.

"At the moment, nothing has been foreseen in terms of taxes or devaluation," said Rodríguez at the National Assembly (AN), where President Hugo Chávez was expected to deliver his address to the nation on his annual management. The minister stressed the government efforts at fighting shortage of essential goods and inflation, which ended 2008 at 30.9 percent, AFP reported.

In 2009, inflation is expected to be at 15 percent in the official budget. However, analysts fear that prices will be higher than the numbers recorded last year. Rodríguez said that the Executive Office is weighing the implementation of economic measures to counter plunging oil revenues.

Last week, the mean quote of the Venezuelan oil basket amounted to USD 37.62 a barrel, very far from almost USD 130 recorded by mid 2008 and USD 60 a barrel estimated in the 2009 budget. "We have prepared different scenarios and, as these scenarios make up, any necessary measure will be applied," said the official.