May 5, 2026

Economist Oliveros: An increase covering the basic basket cannot be given due to fiscal reasons

Economist Luis Oliveros indicated that in Venezuela, a higher salary increase that could cover the basic basket, which currently hovers around one thousand dollars, cannot be implemented due to the country's fiscal reasons and decisions. According to Unión Radio, Oliveros stated that state revenues are insufficient and the Labor Law also influences this process. He explained that an increase in salaries not aligned with state income levels would provoke a fiscal deficit, consequently increasing inflation and devaluation expectations. He also noted the need to review the Labor Law given the country's changes over the years, recommending its reform and adjustment to the current economic reality. However, the expert pointed out that salary increases involve a process that began on May 1st and highlighted the conversations between the government, unions, and the private sector as a positive sign. In an interview with Shirly Varnagy for the Onda circuit of Unión Radio, he emphasized the importance of stabilizing inflation, reducing exchange rate volatility, and producing over one and a half million barrels to consider more significant future increases and reach a stabilization process. Oliveros also noted that inflation was recorded in April, marking the first deceleration since October 2024. Furthermore, he indicated that the recovery of the electrical sector is fundamental as it is linked to the private, public, and oil sectors, stating that without electricity, these sectors would struggle to grow.