International Herald Tribune: No more new cars, flush salaries or fat bonuses for government officials in Venezuela. President Hugo Chavez has signed a decree to end government spending on luxuries as Venezuela's oil earnings shrink dramatically. "We must put and end to mega-salaries, mega-bonuses," Chavez said. "He who wants to be rich, go elsewhere."

Chavez first announced the decree as part of an economic package proposed Saturday to combat falling oil prices. Venezuela, which relies on oil for 93% of exports and nearly half the government's budget, has seen world crude prices erode 64% since July, to $52.77 a barrel on Wednesday.

• The leftist president called not only for an end to fancy cell phone services but also for a shift away from a culture of excess spending. "We're tirelessly fighting against this -- this old culture of waste," he said in a televised address.

Critics said the measures -- which included a sales tax hike to 12% from 9% and an increase in local debt sales -- fail to address Venezuela's soaring inflation and slowing economic growth.  The belt tightening under the spending decree could include everything from whisky-fueled parties to unnecessary furnishings and office remodeling. Even excessive publicity, promotional material and publications will be off limits, said Chavez -- whose own image is displayed widely on billboards and subway stations posters.

The decree, which will take effect upon its publication in the government's Official Gazette, prohibits the payment of bonuses to top officials.

Read more: http://www.iht.com/articles/ap/
2009/03/26/news/LT-Venezuela-Government-Cutbacks.php