Venezuela’s government has unveiled a proposed budget for 2026 that represents a 12% reduction compared to this year’s spending plan. Vice President Delcy Rodriguez presented the 20 billion USD budget to the National Assembly, amidst escalating tensions with the United States.
Speaking to lawmakers, Rodriguez stated, “We are presenting this budget in a context particular to Venezuela, a Venezuela under siege.” She emphasized, “This is a budget for a positive Venezuela… despite US intervention.”
The backdrop to this budget proposal is the increased US military presence in the Caribbean Sea. While the US claims this deployment is aimed at combating drug trafficking, Venezuelan President Nicolas Maduro views it as a pretext for his ouster and the seizure of the nation’s vast oil reserves.
The proposed budget of 5.02 billion Bolivars translates to less in US dollar terms than the 2025 budget, which stood at 22.7 billion USD. While Venezuela emerged from hyperinflation in 2021 and eight years of recession, recent central bank data indicates signs of recovery. The nation reported a GDP growth rate of 8.7% in the third quarter of this year.
However, the Venezuelan Bolivar continues to depreciate, undermining economic stability. The gap between the official dollar exchange rate and the black market rate has widened, exceeding 50%. The government attributes these economic difficulties to US sanctions, particularly those imposed on the oil sector since 2019.
Rodriguez asserted, “This is a Venezuela that has found its way in the face of this campaign of psychological terror against the country and the intensive deployment of US military forces.”
