The general state budget for 2016 will not exceed the $ 30,000 million. The figure responds to the price of a barrel of crude oil projected by the Government. According to initial estimates, the oil barrel will not exceed the barrier of 40 dollars.
Fausto Herrera, Finance Minister, justified the budget reduction of at least 17%, noting that less expenditure is required before “lower income.” Current expenditure, for example, will be “optimized.” This refers to wages and salaries in the public sector.
During his appearance before the Commission on Economic Regime of the National Assembly, Herrera said that cuts will be made in investment in strategic sectors.
He also said that hydroelectric plants will generate savings of $ 750 million because the subsidy to electricity will be withdrawn.