An Outlook on Venezuela Economy and Public Finance

After 1998, Venezuela has experienced both political and economic transformations. This study examined post-1998 economic and financial changes that took place in Venezuela, in the light of the main macroeconomic and financial indicators. Contrary to the neo-liberal policies, Venezuela increased public and social spending by using transfer expenditures widely, the Central Bank autonomy was not recognized, the Central Bank resources were used for public expenditure, a fixed exchange rate policy and nationalizations were implemented. Implemented economic and fiscal policies have led to significant improvements in the income distribution. However, the big share of the private sector in Venezuela economy threats the gains of the country.