Hugo Chavez Eyes Spending Cuts

Hugo Chavez, the controversial President of Venezuela, is one of the many world leaders searching for ways to survive during these difficult economic times. In Venezuela, the economy has been negatively affected by slumping oil prices.

Hugo Chavez (Image: Flickr)

Chavez recently outlined a plan that will cut spending deemed unnecessary by federal employees. Examples of spending that will be cut includes money paid toward everything from new automobiles to cell phones to lavish parties. Chavez also plans to reduce the yearly income of many of those employed by the Venezuelan government.

Another way Chavez plans to boast Venezuela’s economy is raising taxes. According to reports, the South American president is ready to increase sales tax from 9% to 12%.

Since oil hit its peak price in the middle months of 2008, prices has dropped by more than 60%. Considering that more than 90% of Venezuela’s exports are oil-related, it’s no surprise that Chavez is actively planning how to keep his economy afloat.